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

Author

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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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