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Jobs, investments, and exporting: the real effects of electricity crises in South Africa

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  • Gideon Ndubuisi
  • Elvis Korku Avenyo

Abstract

South Africa's grid remains unstable and characterized by frequent power cuts. Employing a generalized difference-in-difference approach, this paper examines the implications of South Africa's electricity crises on jobs, capital investment, and exporting across manufacturing firms in the country. Our results show robust evidence that the electricity crises have destroyed jobs, lowered capital investments, and upended export activities of manufacturing firms, with this adverse effect severe for firms with higher energy vulnerability intensity.

Suggested Citation

  • Gideon Ndubuisi & Elvis Korku Avenyo, 2024. "Jobs, investments, and exporting: the real effects of electricity crises in South Africa," WIDER Working Paper Series wp-2024-89, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2024-89
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    References listed on IDEAS

    as
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    2. Ama Baafra Abeberese, 2020. "The Effect of Electricity Shortages on Firm Investment: Evidence from Ghana," Journal of African Economies, Centre for the Study of African Economies, vol. 29(1), pages 46-62.
    3. Sune Karlsson & Nannan Lundin & Fredrik Sjöholm & Ping He, 2009. "Foreign Firms and Chinese Employment," The World Economy, Wiley Blackwell, vol. 32(1), pages 178-201, January.
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