Publication:
Extreme Weather Shocks and Firms in the Middle East and North Africa

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dc.contributor.authorZaveri, Esha
dc.contributor.authorGatti, Roberta
dc.contributor.authorIslam, Asif M.
dc.date.accessioned2024-12-19T18:09:45Z
dc.date.available2024-12-19T18:09:45Z
dc.date.issued2024-12-19
dc.description.abstractThe Middle East and North Africa is the most water scarce region in the world. Although studies have explored the effect of extreme weather events on agriculture, much less is known about the effect on businesses. Using geocoded firm-level data from the World Bank’s Enterprise Surveys across the Middle East and North Africa region, this study analyzes the effects of precipitation shocks on firm performance. The findings show that firms in areas that experience negative precipitation shocks have lower sales, labor productivity, and investment. The study tests a number of channels identified in the literature. Poor infrastructure, such as water and electricity outages, and lower access to finance that occur as a result of negative precipitation shocks are found to be key channels. Negative precipitation increases the share of temporary workers, possibly explaining the drop in labor productivity. A new channel of governance is also uncovered—negative precipitation shocks increase the time spent by senior management in dealing with regulations and expectations of solicitations of bribes. The results also show that firms respond to precipitation shocks by adopting greener practices, suggesting scope for adaptation in the region.en
dc.identifierhttp://documents.worldbank.org/curated/en/099353512172412431/IDU1e7c8e02f1f2ce14efd1bbbe1b33cc284588f
dc.identifier.doi10.1596/1813-9450-11004
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11004
dc.identifier.urihttps://hdl.handle.net/10986/42564
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11004
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectNO POVERTY
dc.subjectCLIMATE ACTION
dc.titleExtreme Weather Shocks and Firms in the Middle East and North Africaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2024-12-19
okr.date.doiregistration2025-04-14T12:01:04.001918Z
okr.date.lastmodified2024-12-17T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099353512172412431/IDU1e7c8e02f1f2ce14efd1bbbe1b33cc284588f
okr.guid099353512172412431
okr.identifier.docmidIDU-e7c8e02f-f2ce-4efd-bbbe-b33cc284588f
okr.identifier.doi10.1596/1813-9450-11004
okr.identifier.externaldocumentum34437276
okr.identifier.internaldocumentum34437276
okr.identifier.reportWPS11004
okr.import.id6106
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099353512172412431/pdf/IDU1e7c8e02f1f2ce14efd1bbbe1b33cc284588f.pdfen
okr.region.geographicalMiddle East
okr.region.geographicalNorth Africa
okr.topicInfrastructure Economics and Finance::Infrastructure Regulation
okr.topicIndustry::General Manufacturing
okr.topicIndustry::Industrial Management
okr.topicAgriculture
okr.topicEnvironment::Environmental Economics & Policies
okr.unitOffice of the Chief Economist (MNACE)
okr.unitPlanet - Chief Economist (GGSCE)
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relation.isAuthorOfPublication.latestForDiscovery2363a65c-510b-5157-ac5a-d99b47f34e19
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
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