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The impact of electricity constraints on access to finance: A firm-level study

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  • Nakhoda, Aadil

Abstract

Firms that report insufficient electricity from the public grid are likely to experience higher constraints on access to finance. The lack of availability of electricity will translate to greater production delays and lower expected profits. Consequently, it will have an adverse impact on the constraints on access to finance. In this paper, I study the impact of constraints on getting electricity as well as electricity usage costs on the constraints on access to finance. I determine whether firms within countries with a deficit level of electricity supply exhibit different patterns in the aforementioned relationship than firms within countries with a surplus level of electricity supply.

Suggested Citation

  • Nakhoda, Aadil, 2014. "The impact of electricity constraints on access to finance: A firm-level study," MPRA Paper 59507, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:59507
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    File URL: https://mpra.ub.uni-muenchen.de/59507/1/MPRA_paper_59507.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    constraints on getting electricity; electricity usage costs; access to finance; government institutions;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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