The Nexus Between Economic Growth and Water Stress in Morocco: Empirical Evidence Based on ARDL Model

Morocco is facing a situation of alarming water stress, aggravated by climate change, overexploitation of resources, and unequal distribution of water, placing the country among the most vulnerable to water scarcity in the MENA region. This study aims to investigate the dynamic relationship between economic growth and water stress in Morocco while highlighting the importance of integrated water management and adaptive economic policies to enhance resilience to water scarcity. A mixed methodology, integrating both qualitative and quantitative methods, was adopted to overview the economic–environmental Moroccan context, and to empirically analyze the GDP (gross domestic product) and water stress in Morocco over the period 1975–2021 using an Autoregressive Distributed Lag (ARDL) approach. The empirical analysis is based on annual data sourced from the World Bank and FAO databases for GDP, agricultural value added, renewable internal freshwater resources, and water productivity. The results suggest that water productivity has a significant positive effect on economic growth, while the impacts of agricultural value added and renewable water resources are less significant and vary depending on the model specification. Diagnostic tests confirm the reliability of the ARDL model; however, the presence of outliers in certain years reflects the influence of exogenous shocks, such as severe droughts or policy changes, on the Moroccan economy. The key contribution of this study lies in the fact that it is the first to analyze the intrinsic link between economic growth and the environmental aspect of water in Morocco. According to our findings, it is imperative to continuously improve water productivity and adopt adaptive management, rooted in science and innovation, in order to ensure water security and support the sustainable economic development of Morocco.