Electricity load shedding: An econometric analysis of the productivity of firms in the manufacturing sector in Lusaka

Type Journal Article - International Journal of Commerce and Management Research
Title Electricity load shedding: An econometric analysis of the productivity of firms in the manufacturing sector in Lusaka
Author(s)
Volume 2
Issue 12
Publication (Day/Month/Year) 2016
Page numbers 151-157
Abstract
The main aim of this paper was to empirically analyse the impact of electricity load shedding on the manufacturing sector in
Zambia. Using cross-section data from the 2014 World Bank Enterprise Survey, this study used the ordinary least squares method
of estimation to empirically analyse the impact of electricity load shedding on the manufacturing sector. It was established that
load shedding, on average, has a negative and significant impact on the productivity of firms, controlling for other production
factors. However, different manufacturing firms were found to react differently to load shedding depending on the sub-sector.
Given that power disruptions are unfavourable to firm productivity and the importance of the manufacturing sector to the
economy, it is clear that Zambia needs to diversify from hydropower to alternative sources of energy.

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