Analyzing the Impact of Trade Liberalization in Morocco through Synthetic Control Analysis and the Role of Preferential Policies

Abstract

This study explores the impact of trade liberalization in Morocco post the 1983 structural adjustment program, utilizing the Synthetic Control method for a comprehensive comparative analysis. Initial findings show a negative impact until 2010, indicating a divergence from the Synthetic Control simulation. However, a positive shift occurs post-2000 due to preferential liberalization policies, leading to sustained economic growth from 2010 onwards. The study underscores the importance of additional liberalization initiatives and structural reforms. While acknowledging contributions, limitations include potential biases in the Synthetic Control method. The research highlights temporal nuances in economic reform impacts, advocating for a long-term perspective in assessing trade liberalization. Beyond Morocco, the study offers insights for policymakers in developing economies, emphasizing the need for selective reform implementation. Overall, it contributes to the understanding of global economic dynamics, prompting further exploration of growth strategies and the intricate interplay between economic reforms, trade liberalization, and sustainable development in developing nations.