The Impact of Water Scarcity on Economic Growth and Human Development in Morocco: A Comparative Analysis Using VAR Models

(Pages 124-134)

Yammad Yousra1,* and Khouloud Ouyadine1
1Docteure en sciences économiques et de gestion
DOI: https://doi.org/10.55365/1923.x2025.23.12

Abstract:

The global water scarcity crisis, exacerbated by climate change, has not spared Morocco, which has experienced a significant decline in its water resources, leading to a notable deterioration in their condition. This growing scarcity of water resources has had a substantial impact on the country's economy and social development. To better understand the implications of this situation, our study builds upon existing research that has highlighted the importance of water for development. By combining a comparative analysis of eight African and Middle Eastern countries, including Morocco, with an in-depth study of the Moroccan case, we explore the impact of access to safe drinking water and sanitation services on economic growth and human development. We use gross domestic product per capita (GDP per capita) and the Human Development Index (HDI) as outcome indicators to assess the influence of several water-related development variables over a 15-year period from 2005 to 2020. To achieve this, we adopted an econometric approach based on the estimation of Vector AutoRegression (VAR) models. Specifically, we employed a panel VAR model for a comparative analysis of multiple countries, including Morocco. This specification allows us to capture cross-country heterogeneity while accounting for the time-varying nature of the variables. Additionally, we estimated a country-specific VAR model for Morocco to identify the unique characteristics of the Moroccan context and situate it within an international perspective.

Our results highlight the crucial role of safe drinking water in stimulating productivity and economic development. Overall, our study suggests that improving water-related indices is more about quality than quantity. The model indicates that increases in water quantity do not significantly contribute to improved economic well-being. This places greater emphasis on qualitative variables, such as water quality, access to sanitation, and efficient water management practices. These findings shed new light on the importance of investing in water access to promote sustainable de velopment, stimulate economic growth, reduce poverty, and improve public health. By prioritizing investments in water infrastructure, sanitation services, and water conservation measures, countries can mitigate the adverse effects of water scarcity and ensure a more equitable and sustainable future for their populations.


Keywords:

Access to safe drinking water- Sanitation- GDP per capita- Human Development Index (HDI - Vector AutoRegression (VAR).


How to Cite:

Yammad Yousra and Khouloud Ouyadine. The Impact of Water Scarcity on Economic Growth and Human Development in Morocco: A Comparative Analysis Using VAR Models. [ref]: vol.23.2025. available at: https://refpress.org/ref-vol23-a12


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