Electricity Supply Unreliability and Technical Efficiency: Evidence from Listed Chinese Manufacturing Companies

This study examines the extent to which electricity shortage influences technical efficiency using data of 805 listed manufacturing companies in China from 2009 2020 collected CSMAR database. To achieve objectives this paper, first, a stochastic frontier analysis (SFA) is used estimate (TE) score companies. Subsequently, TE evaluate index and other factors that are postulated affect enterprise productivity. Two estimation methods have been adopted including ordinary least squares (OLS), less robust endogeneity instrumental variable (IV) estimation, turns out be more data. The empirical results show that, under OLS has significantly negative impact on However, when IV regression implemented address issues data, shortages tend positive efficiency, underscoring importance capturing Extending baseline results, also finds while size an may no bearing, state-owned likely negatively affected by compared privately owned These significant implications for industrial policy design particular, developing countries general. Most importantly, underscore policies measures promote shift ownership structure towards private sector.