The Burden of Water Shortages on Informal Firms | Zendy

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The Burden of Water Shortages on Informal Firms

Author(s) -

Asif Islam

Publication year - 2019

Publication title -

land economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.961

H-Index - 86

eISSN - 1543-8325

pISSN - 0023-7639

DOI - 10.3368/le.95.1.91

Subject(s) - economic shortage , livelihood , informal sector , business , sample (material) , developing country , productivity , population , duration (music) , natural resource economics , agricultural economics , demographic economics , economics , labour economics , economic growth , agriculture , geography , demography , art , linguistics , philosophy , chemistry , literature , archaeology , chromatography , government (linguistics) , sociology

The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using firm-level data for 12 developing economies between 2009 and 2014. The findings indicate that an increase of one standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5% of the monthly sales per worker for the average informal firm in the sample that uses water for business activities. (JEL O17, Q25)

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