Studying Foreign Trade and Economic Growth of Morocco using Regression and Grey Relational Analyses

Abstract

The study conducts an empirical examination of the relationship between foreign trade and economic growth in Morocco, employing two distinct analytical models: The Dynamic Grey Relational Analysis (GRA) model and the Multiple Regression model. The empirical outcomes reveal that foreign trade exerts a statistically significant and positive influence on the economic growth of Morocco, a relationship consistently substantiated by both the GRA and regression models. Nevertheless, it is important to emphasize that the linkage between these variables is characterized by a high degree of dynamism, influenced by a diverse array of economic determinants. Furthermore, the results point to the primary pathway through which foreign trade impacts economic growth in Morocco, highlighting its role in fostering capital accumulation and technological progress. Consequently, this study implies that strategic policies oriented toward the promotion of foreign trade and foreign investment have the potential to significantly bolster sustained economic growth within the Moroccan context.