EFFECTS OF WATER INSUFFICIENCY ON THE BRAZILIAN FIRMS’ PRODUCTIVITY
DOI:
https://doi.org/10.22456/2176-5456.102113Keywords:
Produtividade, PTF, Insuficiência de Água, Propensity Score MatchingAbstract
This article aims to investigate empirically the effect of water insufficiency for production on labor productivity and total factor productivity (TFP) of Brazilian manufacturing firms with information for 2007 provide by the World Bank's Investment Climate Survey (ICS). To measure the average effects of water insufficiency on productivity, Propensity Score Matching estimation methods are used to deal with possible self-selection bias and to balance in terms of observed attributes the treatment (firms with water insufficiency) and control groups (firms without water insufficiency). The results of the different estimates suggest, with some robustness, the existence of a negative average effect associated with insufficient water on the PTF of the companies that suffered such a problem.
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