This paper provides novel evidence on the impact of changes in energy prices on manufacturing performance in two large developing economies-Indonesia and Mexico. It finds that unlike increases in electricity prices, which harm plants' performance, fuel price hikes result in higher productivity...

Government strategies for setting energy prices are not uniform across the Latin America and the Caribbean (LAC) region-- or even across fuels. Instead, they cover a full spectrum, ranging from discretionary price-fixing at one end to pure market-based approaches at the other. In between is a...