Impact of groundwater accessibility on performance of firms

While labour laws and capital have been identified as key constraints to industrial growth, there is scant evidence on whether accessibility of vital natural resources, such as groundwater, also influences industrial performance. This project fills this gap by determining how and why groundwater accessibility influences industrial outcomes and productivity. It explores two possible mechanisms: groundwater-inaccessible areas have low agricultural productivity and the resulting poverty dampens demand for manufactured goods; or alternatively, groundwater inaccessibility may raise the cost of manufacturing directly.

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