Determinants of Poverty: Evidence from Morocco through ARDL Approach

Abstract

Since gaining independence, Morocco has made a commitment to achieving goals aimed at achieving a high rate of economic growth in order to raise the standard of living for its people. As such, this ongoing commitment is based on a strategy that aims to lower the poverty rate and provide a dignified life for those who are vulnerable. However, it is crucial to comprehend the factors that contribute to poverty in order to implement an effective strategy for combating it. In this regard, this article aims to analyze poverty in Morocco through an economic study of the effects of economic growth, education, inflation, and unemployment on the evolution of poverty in Morocco. This study examined the intricate connections between economic growth, inflation, unemployment, and poverty in the Moroccan environment using the ARDL method. Poverty and education are related, both immediately and over time. Initially, the dependent variable and the independent variables do not have a long-term relationship. On the other hand, economic expansion has a statistically significant short-term effect on reducing poverty. however, after making changes to the analysis model, the dependent and independent variables have a significant long-term association. These findings can concentrate efforts on the areas that are most crucial for lowering poverty and improving the standard of living for vulnerable people by identifying the factors that have a substantial impact on poverty. This study contributes to the scientific understanding of the factors influencing poverty in Morocco by using an economic approach.