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The determinants of electricity constraints by firms in developing countries
[Les déterminants de la contrainte d'accès à l'électricité des entreprises dans les pays en développement]

Author

Listed:
  • Elizabeth Asiedu
  • Théophile T Azomahou
  • Neepa B Gaekwad
  • Mahamady Ouedraogo

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

According to the World Bank Enterprises Survey data (WBES), electricity is one of the top constraints to business operations in developing countries. Data from 108 developing countries between 2006 and 2017 show that about 13.6 percent of firms report electricity as the top constraint they face in their activities. This makes electricity the second most important constraint, the first being access to finance (15.2% of firms surveyed). Particularly, in Sub-Saharan Africa (24.53%) and South Asia (23.54%), access to electricity is the first constraint to business development, ahead of political instability and access to finance.

Suggested Citation

  • Elizabeth Asiedu & Théophile T Azomahou & Neepa B Gaekwad & Mahamady Ouedraogo, 2021. "The determinants of electricity constraints by firms in developing countries [Les déterminants de la contrainte d'accès à l'électricité des entreprises dans les pays en développement]," Post-Print hal-03460767, HAL.
    • Handle: RePEc:hal:journl:hal-03460767
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-03460767v1
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    Cited by:

    1. Apeti,Ablam Estel & Ly,Alpha, 2023. "Power Constraints and Firm-Level Total Factor Productivity in Developing Countries," Policy Research Working Paper Series 10510, The World Bank.
    2. Zhang, Dengjun & Durmaz, Nazif & Kagochi, John M., 2025. "Energy outages, in-house power generators, and capacity utilization: The case of African manufacturing," Energy Economics, Elsevier, vol. 147(C).
    3. Guo, Dongmei & Li, Qin & Liu, Peng & Shi, Xunpeng & Yu, Jian, 2023. "Power shortage and firm performance: Evidence from a Chinese city power shortage index," Energy Economics, Elsevier, vol. 119(C).
    4. Apeti, Ablam Estel & Ly, Alpha, 2024. "Power constraints and firm-level total factor productivity in developing countries," Energy, Elsevier, vol. 309(C).
    5. Yu, Jian & Liu, Peng & Fu, Dahai & Shi, Xunpeng, 2023. "How do power shortages affect CO2 emission intensity? Firm-level evidence from China," Energy, Elsevier, vol. 282(C).

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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