A study of the economic growth of African countries: Evidence from Morocco

Abstract

Subject. We consider the economic growth in Morocco, expressed in terms of Gross Domestic Product. Objectives. The purpose is to perform a comprehensive study of possible impact of the tourism industry and its individual indicators on the economic growth of Morocco. Methods. The study employs methods of correlation and regression analysis, using statistical data of the Ministry of Economy and Finance of the Kingdom of Morocco on the main macroeconomic indicators of the country and its individual industries, and scientific literature on the topic. Results. We identified key variables that have an impact on GDP of Morocco. They include foreign direct investment in tourism, tourist arrivals, tourist spending, and government expenditure on tourism. We developed an econometric model that reflects the relationship between economic growth in Morocco and enables to assess the contribution of foreign direct investment in tourism and international tourist spending to the country's GDP. Conclusions. The developed model helps make informed management decisions in forecasting GDP growth targets.