Rural Electrification and Manufacturing Firm Performance in Benin - An Ex-Ante Impact Assessment

37 Pages Posted: 9 Jul 2010

See all articles by Jörg Peters

Jörg Peters

RWI - Leibniz Institute for Economic Research; University of Passau - Business Administration and Economics

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Marek Harsdorff

International Labour Organization (ILO)

Date Written: June 1, 2010

Abstract

Productive electricity use is widely believed to contribute to positive impacts of electrification projects. This paper investigates these impacts by comparing the performance of micromanufacturing enterprises in grid-covered and non-covered villages in Northern Benin. Using firm-level data, the empirical analysis employs a Propensity Score Matching. While beneficial impacts are found from firm creation after electrification, firms that existed before actually show a non-significantly inferior performance to their matched counterparts from a non-electrified region. Complementary measures that sensitize firms about the implications of a grid connection are recommended as important features of program design.

Keywords: Impact evaluation, propensity score matching, productive electricity use

JEL Classification: C21, O14, O22, L69

Suggested Citation

Peters, Jörg and Vance, Colin and Harsdorff, Marek, Rural Electrification and Manufacturing Firm Performance in Benin - An Ex-Ante Impact Assessment (June 1, 2010). Available at SSRN: https://ssrn.com/abstract=1635764 or http://dx.doi.org/10.2139/ssrn.1635764

Jörg Peters (Contact Author)

RWI - Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
45128 Essen
Germany
0049-201-8149-247 (Phone)

HOME PAGE: http://www.rwi-essen.de

University of Passau - Business Administration and Economics ( email )

Wirtschaftswissenschaftliche Fakultaet
Passau, D-94030
Germany

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany
0049-201-8149-237 (Phone)

HOME PAGE: http://www.rwi-essen.de

Marek Harsdorff

International Labour Organization (ILO) ( email )

Route des Morillons 4
Geneva
Switzerland

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