Water and economic growth in OPEC country (Approach in the government management of resources operational)

The influence of water utilization on economic growth is depicted through a growth model that includes this congestible public good as a productive input for private producers. Growth is negatively affected by the government's appropriation of output to supply water but positively influenced by the contribution of increased water use to capital productivity, leading to an inverted-U relationship between economic growth and the rate of water utilization. Cross-country estimations confirm this relationship and suggest that for most economies current rates of freshwater utilization are not yet constraining growths. However, for a handful of countries, moderate or extreme water scarcity may affect economic growth adversely