The impact of socioeconomic factors on water stress: insights from global analysis

By utilizing a socioeconomic framework, this paper contributes to the water stress literature. Employing the instrumental variable quantile regression model on 81 countries from 2000 to 2019, our findings reveal financial development can alleviate high levels of water stress. Good governance consistently reduces water stress but human development exacerbates water stress, indicating a conflicting relationship between improving human development and reducing water stress. The moderating effect of good governance reveals that when combined with human development, it can effectively reduce water stress.