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

Gideon Ndubuisi and Elvis Korku Avenyo

No wp-2024-89, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Electricity; Jobs; Exports; Investments; Manufacturing firms; South Africa (search for similar items in EconPapers)
Date: 2024
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