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Losing to Blackouts: Evidence from Firm Level Data

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  • Daniel Gurara
  • Dawit Tessema

Abstract

Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms. This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions. Our estimates show that these disruptions, on average, result in productivity losses of about 4–10 percent. We found nonlinear productivity losses at different quantiles along the productivity distribution. Firms at higher quantiles faced higher losses compared to firms around the median. We observed patterns of systematic shutdowns as firms attempt to minimize losses.

Suggested Citation

  • Daniel Gurara & Dawit Tessema, 2018. "Losing to Blackouts: Evidence from Firm Level Data," IMF Working Papers 2018/159, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/159
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    References listed on IDEAS

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    Cited by:

    1. Florian Morvillier, 2020. "Infrastructures and the real exchange rate," EconomiX Working Papers 2020-26, University of Paris Nanterre, EconomiX.

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