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Power infrastructure quality and manufacturing productivity in Africa: A firm level analysis

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  • Moyo, Busani

Abstract

This study sought to examine the impact of the quality of power infrastructure on productivity in African manufacturing firms using data from the World Bank enterprise surveys. We measured power infrastructure quality using the number of hours per day without electricity and the percentage of output lost due to outages and found these indicators to be negative and significant determinants of productivity. These variables seem to be significant determinants in Uganda, Tanzania and Zambia as well as in the food and agriculture sector. To improve economic growth and encourage employment creation, governments in Africa have to come up with measures to improve the reliability of electricity infrastructure.

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  • Moyo, Busani, 2013. "Power infrastructure quality and manufacturing productivity in Africa: A firm level analysis," Energy Policy, Elsevier, vol. 61(C), pages 1063-1070.
    • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1063-1070
    DOI: 10.1016/j.enpol.2013.05.111
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    Cited by:

    1. Co, Catherine Y., 2014. "Supply-side constraints, capital goods imports, and the quality of Sub-Saharan African countries exports," WIDER Working Paper Series 142, World Institute for Development Economic Research (UNU-WIDER).
    2. Marta Duda-Nyczak & Christian Viegelahn, 2016. "Exporters, Importers and Employment: Firm-Level Evidence from Africa," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(3), pages 309-341, September.
    3. Lin, Boqiang & Chen, Yu, 2019. "Will economic infrastructure development affect the energy intensity of China's manufacturing industry?," Energy Policy, Elsevier, vol. 132(C), pages 122-131.
    4. Acar, Pinar & Berk, Istemi, 2022. "Power infrastructure quality and industrial performance: A panel data analysis on OECD manufacturing sectors," Energy, Elsevier, vol. 239(PC).
    5. Ahmed, Riaz, 2016. "Social infrastructure and productivity of manufacturing firms: Evidence from Pakistan," ZEW Discussion Papers 16-038, ZEW - Leibniz Centre for European Economic Research.
    6. Mohammad Abir Shahid Chowdhury & Shuai Chuanmin & Marcela Sokolová & ABM Munibur Rahman & Ahsan Akbar & Zahid Ali & Muhammad Usman, 2021. "Unveiling the Nexus between Access to Electricity, Firm Size and SME’s Performance in Bangladesh: New Evidence Using PSM," Energies, MDPI, vol. 14(20), pages 1-16, October.
    7. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    8. Fedajev, Aleksandra & Mitić, Petar & Kojić, Milena & Radulescu, Magdalena, 2023. "Driving industrial and economic growth in Central and Eastern Europe: The role of electricity infrastructure and renewable energy," Utilities Policy, Elsevier, vol. 85(C).
    9. Catherine Y. Co, 2014. "Supply-Side Constraints, Capital Goods Imports, and the Quality of Sub-Saharan African Countries' Exports," WIDER Working Paper Series wp-2014-142, World Institute for Development Economic Research (UNU-WIDER).
    10. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2020. "Mapping and Spatial Analysis of Electricity Load Shedding Experiences: A Case Study of Communities in Accra, Ghana," Energies, MDPI, vol. 13(17), pages 1-26, August.
    11. Thomas, Douglas & Fung, Juan, 2022. "Measuring downstream supply chain losses due to power disturbances," Energy Economics, Elsevier, vol. 114(C).
    12. Ihuoma Chikulirim Eke & Felix Awara Eke & Awara Emeng Edom, 2023. "Infrastructure and Manufacturing Sector Performance in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(7), pages 130-139, July.
    13. Tiwari, Aviral Kumar & Eapen, Leena Mary & Nair, Sthanu R, 2021. "Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods," Energy Economics, Elsevier, vol. 94(C).
    14. Pillot, Benjamin & Muselli, Marc & Poggi, Philippe & Dias, João Batista, 2019. "Historical trends in global energy policy and renewable power system issues in Sub-Saharan Africa: The case of solar PV," Energy Policy, Elsevier, vol. 127(C), pages 113-124.
    15. Fakih Ali & Ghazalian Pascal & Ghazzawi Nancy, 2020. "The Effects of Power Outages on the Performance of Manufacturing Firms in the MENA Region," Review of Middle East Economics and Finance, De Gruyter, vol. 16(3), pages 1-28, December.
    16. Diao, Xinshen & Kweka, Josaphat & McMillan, Margaret, 2018. "Small firms, structural change and labor productivity growth in Africa: Evidence from Tanzania," World Development, Elsevier, vol. 105(C), pages 400-415.
    17. Zhang, Liyunpeng & Zhuang, Yuhang & Ding, Yibing & Liu, Ziwei, 2023. "Infrastructure and poverty reduction: Assessing the dynamic impact of Chinese infrastructure investment in sub-Saharan Africa," Journal of Asian Economics, Elsevier, vol. 84(C).
    18. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2021. "Impacts of Electricity Outages in Urban Households in Developing Countries: A Case of Accra, Ghana," Energies, MDPI, vol. 14(12), pages 1-26, June.
    19. Haytham El-houari & Amine Allouhi & Shafiqur Rehman & Mahmut Sami Buker & Tarik Kousksou & Abdelmajid Jamil & Bouchta El Amrani, 2019. "Design, Simulation, and Economic Optimization of an Off-Grid Photovoltaic System for Rural Electrification," Energies, MDPI, vol. 12(24), pages 1-16, December.
    20. Gregory, Julian & Sovacool, Benjamin K., 2019. "The financial risks and barriers to electricity infrastructure in Kenya, Tanzania, and Mozambique: A critical and systematic review of the academic literature," Energy Policy, Elsevier, vol. 125(C), pages 145-153.
    21. Jonathan D. Quartey, 2021. "Energizing Africa Sustainably: Lessons from Ghana’s Electricity Infrastructure," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 6(1), pages 1-17, June.
    22. Chen, Hao & Jin, Lu & Wang, Mingming & Guo, Lin & Wu, Jingwen, 2023. "How will power outages affect the national economic growth: Evidence from 152 countries," Energy Economics, Elsevier, vol. 126(C).
    23. Chen, Yu & Lin, Boqiang, 2021. "How does infrastructure affect energy services?," Energy, Elsevier, vol. 231(C).
    24. Hasan M. Salman & Jagadeesh Pasupuleti & Ahmad H. Sabry, 2023. "Review on Causes of Power Outages and Their Occurrence: Mitigation Strategies," Sustainability, MDPI, vol. 15(20), pages 1-34, October.
    25. Sosson Tadadjeu & Paul Ningaye & Henri Njangang, 2023. "Are natural resources also bad for infrastructure quality?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1053-1079, August.

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