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Ama Baafra Abeberese
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Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (2023) 105 (3): 713–722.
Published: 09 May 2023
Abstract
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While recent work suggests democracy does cause growth, the channels through which this effect occurs remain unclear. Exploiting quasi-random variation in the timing of district-level political regime changes induced by the collapse of President Suharto's government, we study the microlevel drivers of the democracy-growth relationship. Using Indonesian firm-level data, we find that democratization leads to an increase in firm productivity, a critical determinant of economic growth. Furthermore we find evidence of an improvement in the quality of local business regulations and the business environment for firms.
Includes: Supplementary data
Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (2017) 99 (5): 839–852.
Published: 01 December 2017
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Using data on Indian firms, I provide evidence on how electricity prices affect a firm’s industry choice and productivity growth. I construct an instrument for electricity price as the interaction between coal price and the share of thermal generation in a state’s total electricity generation capacity. I find that in response to an exogenous increase in electricity price, firms switch to less electricity-intensive production processes within narrowly defined industries, reduce their machine intensity, and have lower output and productivity growth rates. Thus, electricity constraints may limit a country’s growth by leading firms to operate in industries with fewer productivity-enhancing opportunities.
Includes: Supplementary data