The Effects of Power Infrastructure Quality on Manufacturing Industry Performance: A Panel Data Analysis on World Bank Enterprise Surveysand HAMAS

This study examines how the power infrastructure quality affects manufacturing industry firms’ performance. To this end, panel data analysis is conducted on World Bank Enterprise Surveys, in which data of one hundred and thirty one thousand firms from one hundred and thirty nine countries covering years 2006–2017 is compiled. While performance and infrastructure indicators provided in the surveys for manufacturing industry firms are used as dependent and independent variables, respectively, some of the indicators related with finance, technology and firm characteristics are included to the analyses as explanatory variables. Empirical findings suggest negative and statistically significant effect of poor power infrastructure quality on capacity usage, an indicator of firm performance. Moreover, it is also found that unreliability on power infrastructure quality leads to increase in labor efficiency of the middle scale companies as well as of all the companies in middle-income countries