Moroccan Economy Research Articles

Moroccan SMEs and the Casablanca Stock Exchange: Governance Issues and Prospects for Introduction

This research paper examines the relationship between corporate governance mechanisms and Moroccan SMEs' access to the Casablanca Stock Exchange. It highlights the importance of SMEs in the Moroccan economy, their key role in value creation and economic growth, and the challenges they face in accessing finance, particularly through the capital markets. The text also explores corporate governance systems, comparing open (Anglo-Saxon) and closed (continental European) models, and situates Morocco in a closed system with a high concentration of capital in large companies. Cross-tabulation and multiple correspondence analysis reveal significant correlations between IPO and various variables, such as the presence of an audit committee, a corporate governance body and knowledge of good governance codes. The econometric model, based on binary logistic regression, confirms that the presence of an audit committee is the main determinant of IPO, significantly increasing the probability of listing. On the other hand, other variables such as beliefs and values, the management system, capital concentration or the management market did not show any significant correlation, highlighting that the quality of internal governance plays an essential role in access to the financial market in Morocco.

Microbiological profile and prevalence of histamine-producing bacteria in fresh sardines stored at different temperatures

Background and Aim: The European pilchard (Sardina pilchardus) is an important fish species for the Moroccan economy in terms of production and export. Biogenic amine histamine is a metabolite produced in the flesh of some fish species after death due to the decarboxylation of free histidine by histaminogenic bacteria. Failure to control the histamine risk in European pilchard may lead to public health and socioeconomic issues. This study aimed to estimate the prevalence of histaminogenic bacteria in association with histamine levels and the growth of microflora in Moroccan sardines (European pilchard). Materials and Methods: We conducted the study by monitoring Moroccan sardines of histamine content and microbiological profile (aerobic plate count [APC], coliforms, and thermo-tolerant coliforms [TTC]) during 6 days of storage at three different temperatures (0°C, 10°C, and ambient temperature [22°C]). The histamine assay was performed using a spectrofluorometric method, and the microbiological identification of histamine-producing bacteria was performed using a combination of biochemical and molecular tests. Results: The histamine content in European pilchard stored at 0°C was negligible. However, high concentrations were observed at 10°C and 22°C. The microbiological profile showed a positive association between microflora counts and histamine content according to storage time. At 0°C, a moderate increase in the APC, a decrease in coliforms, and an absence of TTC were observed. The rapid proliferation of all microflora was observed at 10°C, whereas at 22°C, the proliferation was almost exponential. Bacterial identification revealed the exclusive presence of species belonging to the Enterobacteriaceae family at varying frequencies depending on storage temperature. Morganella morganii and Proteus mirabilis had the highest histamine induction rates in L-histidine-supplemented broth, with 1600 and 255 parts per million (ppm), respectively, after 48-h incubation at 35°C. Klebsiella ozaenae could produce 136 ppm and Serratia plymuthica 115 ppm. Reverse transcription polymerase chain reaction showed positive results for the presence of genes associated with histidine decarboxylase. The hdc genes of M. morganii, P. mirabilis, and K. ozaenae were successfully amplified and exhibited strong similarity with the reference gene of M. morganii. Conclusion: This study describes for the first time the hdc gene in bacteria that form histamine in Moroccan sardines. The results also confirm that respect for the cold chain integrity is a crucial factor in histamine management. This information should help stakeholders in the implementation of sound strategies for managing the hazards associated with seafood and their products. Keywords: Enterobacteriaceae, histamine, Histaminogenic bacteria, polymerase chain reaction, sardine, seafood.

Digital transformation: A pillar of structural transformation of Moroccan economy

Digital transformation: A pillar of structural transformation of Moroccan economy

Modelling The Relationship Between Cyclical Output and Cyclical Unemployment: Empirical Validation of Okun’s Law - The Case of Morocco.

The aim of this study is to analyse the dynamic relationship between economic growth and unemployment in Morocco. By examining the validity and asymmetry of Okun's law. Based on quarterly data covering the period from 2000 to 2022, we adopt a dynamic modelling of Okun's law, with the aim of estimating its elasticities during recessions and expansions using an ARDL model. The results of the study show the existence of an inverse relationship between GDP and unemployment with a strong persistence of the unemployment rate. The asymmetry study showed that unemployment reacts more strongly to negative deviations in real GDP than to positive deviations. In terms of policy implications, the study recommends the need to reform the structure of the Moroccan economy so as to allow the integration of a greater number of workers, while stimulating economic growth through the promotion of labour-intensive investment. Involving the Moroccan economy in a process of structural transformation is a crucial element, and investment in areas such as innovation, R&D or digital technology can help to increase real gross domestic product and consequently reduce the unemployment rate.

A DSGE model approach to examining the impact of the Russian–Ukrainian War and oil shocks on the Moroccan economy

AbstractThis study explores the impact of oil shocks on the Moroccan economy using a dynamic stochastic general equilibrium (DSGE) model. The DSGE simulations reveal that these shocks, exacerbated by the war in Ukraine, led to a contraction in the output gap, consumption, investment, and savings, as well as increased inflation. These results highlight the vulnerability of the Moroccan economy to external shocks, particularly those linked to energy prices. They underline the need for Morocco to diversify its energy sources and reduce its dependence on oil imports. Furthermore, our results suggest that economic policies should focus on mitigating the effects of these shocks. Future research could seek to refine this model by incorporating other factors likely to influence the Moroccan economy, such as changes in global demand or specific government policies.

Tourism And the Issue of Sustainability in Morocco: The Case of The Seaside Resort Taghazout

Tourism has long been a crucial activity for the Moroccan economy, making a significant contribution to the country's GDP. As a result, this sector ranks high among the State's priorities, and it receives paramount importance in terms of planning and investment. The objectives of the tourism plans differ. Mainly stemming from the directives of international financial institutions, these objectives will contribute to the boom of mass tourism, disregarding the social and environmental dimensions of "touristified" territories. It was not until the development of Vision 2020 that the concept of sustainable tourism emerged, which "sustainably values territories, populations, heritages, and spreads its beneficial effects in the most remote areas of the Kingdom" (Program Contract 2011-2020, 2010: 5). The concept of sustainable tourism is relatively recent, and the first guide "towards sustainable tourism" was published in 2006 by the UNWTO and UNEP. As for the global criteria for sustainable tourism introduced in December 2019. The aim of this study is to assess the extent to which Moroccan tourism meets the criteria for sustainable tourism in destinations. The criteria to be analyzed are applied to the resort of Taghazout, which is Morocco's foremost coastal resort in terms of development.

A Critical Examination of Tax Fraud Dynamics and Policy Responses in the Moroccan Economy

This article presents a critical examination of the dynamics of tax fraud within the Moroccan economy and evaluates the policy responses to this challenge. Tax fraud, a persistent issue in Morocco, is analyzed through a legal, economic, and administrative lens, highlighting its impact on the state’s fiscal health and governance. The study delves into the intricacies of Morocco’s tax law, drawing comparisons with the French legal framework to provide a broader understanding of different approaches to fiscal discipline. Furthermore, the paper explores the recent strategic shifts in Morocco’s fiscal policy, particularly in light of its commitment to international conventions against base erosion and profit shifting. Through an in-depth analysis, the article proposes a multi-faceted strategy for enhancing Morocco’s tax fraud prevention mechanisms, including taxpayer engagement, reforming the perception of tax fraud, and bolstering the administrative and operational capabilities of tax authorities. This comprehensive approach is aimed at not only addressing the current shortcomings in Morocco’s tax system but also at fostering a culture of compliance and transparency, vital for the country’s economic sustainability.

Economic Growth Unleashed: The Power of Institutional Quality

This paper examines the relationship between economic growth and institutional quality in the context of the Moroccan economy. Using annual data from 1970 to 2020 and an Autoregressive Distributed Lag (ARDL) cointegration approach, we analyze the long-run and short-run nexus between these two variables. The statistical tests performed, including the ADF and Phillips Perron tests, indicate integration at different orders, and the bounds cointegration test proposed by Pesaran was also conducted. The study finds that institutional quality has a positive short-term impact on economic growth. Furthermore, in the long term, the study reveals that institutional quality continues to positively influence economic growth in Morocco (P-value=0,01<5 %). These results contribute valuable insights to the existing empirical literature and can guide policymakers and stakeholders in implementing institutional reforms to promote economic development

Analyzing the Influence of Cloud Business Intelligence on Small and Medium Enterprises A Case Study of Morocco

Business intelligence (BI) has long been a crucial factor in bolstering organizational competitiveness, offering strategic insights that shape decision-making and propel business expansion. The advent of cloud computing has further amplified data sharing and collaboration. This study advocates for the adoption of Cloud BI as an innovative tool to bolster the economic growth of small- and medium-sized enterprises (SMEs) in Morocco. We emphasize the interconnectedness of these businesses' performance with the overall well-being of the Moroccan economy, underscoring the need for regulatory bodies to prioritize not only financial support but also a keen focus on technological advancements. We explore how technological integration can enhance the competitive edge of SMEs. Finally, we conclude by presenting a framework that incorporates the migration of BI to the cloud within the realm of Cloud BI. Drawing inspiration from prior research, we propose modifications tailored to address the specific concerns of SMEs in embracing cloud BI technology.

A simulation of the macroeconomic effects of the Russia–Ukraine War on the Moroccan economy using the DSGE model

AbstractRussia's invasion of Ukraine has had significant global economic implications, disrupting trade flows and leading to a rise in oil prices that has affected world economies, including Morocco. The aim of this study is to assess the impact of these external shocks on the Moroccan economy using a dynamic stochastic general equilibrium (DSGE) model, which enables detailed analysis of the interactions between various macroeconomic variables such as inflation, exchange rates and trade balances. The results of the study highlight the importance of taking risk premium shocks into account in economic policy‐making, as they can lead to higher inflation and a real depreciation of the Moroccan currency. The DSGE model provides a sound analytical framework for policy‐makers to assess and manage the impact of these external shocks on the Moroccan economy and thus promote economic stability and growth in the context of global economic uncertainty.

A new identification method of economic large shocks in the input–output framework: application to the COVID-19

The COVID-19 pandemic has had a significant and unprecedented impact on the global economy, affecting both supply and demand in various industries. The literature on the pandemic has mainly focused on evaluating its real-time impact, using input–output analysis as a toolset. However, this paper aims to identify the magnitude of the large shock after observing its impacts on the economy. The proposed methodology adopts the main assumptions usually made in input–output analysis and focuses on the short term, assuming no significant changes in structures and prices. The approach is based on the technique of hypothetical extraction, which is generalized to consider the possibility of a shock simultaneously impacting all industries. Applying this approach to the Moroccan economy to identify the COVID-19 shock at the sectoral level, it appears that the most significant negative shocks were experienced by three industries, namely tourism, transport and mechanical industries, metallurgical, electrical. This is largely due to the nature of these industries, which are more sensitive to production constraints imposed to limit the spread of the pandemic. The results also show that other branches of activity have been severely impacted via the indirect channel of inputs rather than directly by the shock of the pandemic.

Floating Exchange Rate Regimes and Macroeconomic Indicators: Evidence from Mena Region and Outlook for the Moroccan Case

Many emerging economies have significantly changed their economic policies by adopting floating exchange rate regimes. In this sense, we examine their effect on the Middle East North African (MENA) region, and based on similarities and differences in macroeconomic structure and fundamentals, the potential effect on the Moroccan economy would be projected. The study provides an overview of the MENA region's experience with exchange rate regimes, looking at their historical development and effects on regional economic stability and growth. If the adoption of floating exchange rate regimes for the emerging economies in the MENA region has benefits including enhanced flexibility, decreased vulnerability to external shocks, and increased competitiveness; however, the considered countries recognize difficulties in setting them up and running them, as well as the requirement for supportive policy measures. This paper underlines the significance of additional research to examine the effects of floating exchange rate regimes on other MENA economies, mainly Morocco, and to determine the most efficient policy measures to maximize the advantages of this regime.

The fiscal theory of the price level: The case of Morocco

In this paper, we will use the econometric model and the price-level fiscal theory (PLFT), which looks at how the government surplus, debt, and inflation interact to apply a vector autoregression (VAR) model to the Moroccan economy. We first want to figure out how fiscal and monetary policy shocks affect the economy. The second thing we want to do is study how fiscal and monetary policy affects each other. So, the theoretical limits we used to determine our model are based on an FTPL framework. The general price level budget and Keynesian theories are not entirely wrong because of what we found. Also, the fact that most of the variation in inflation can be explained by changes in the money supply suggests that monetary policy works well in the Moroccan economy to control inflation. However, debt policy has little effect on this control. The government is worried about the level of public debt in Morocco because it positively affects the economy. Also, the positive effects over time should give the government confidence that the debt policy is working. So, debt dynamics still need to be a reason to worry because they would help the economy overall. Because it has a negligible effect on the economy immediately and lowers inflation, the government should pay less attention to the amount of debt and how quickly it grows.

Contribution of Entrepreneurial Innovation to the Moroccan Economy

This article emphasizes the significance of entrepreneurial innovation in the Moroccan economic context. It highlights the opportunities it presents for enhancing the country's economic performance while acknowledging the challenges it faces. Morocco must continue to support entrepreneurial innovation by implementing policies and measures that promote entrepreneurship, stimulate research and development, and improve access to financing for entrepreneurs. In this regard, the article provides an overview of the Moroccan economic environment, focusing on the current state of the country's economy, the importance of entrepreneurial innovation in strengthening its economic performance, as well as the contributions and limitations of this innovation to the Moroccan economy. Despite existing constraints, Morocco must persevere in supporting entrepreneurial innovation through the implementation of policies and measures aimed at fostering entrepreneurship, stimulating research and development, and enhancing access to financing for entrepreneurs.

The role of FDI in structural transformation in Morocco (1995-2022)

In the general context of Morocco's New Development Model (NDM), where the policy of territorial attractiveness requires all its credentials, and more specifically within the framework of the regional declination of the Industrial Acceleration Plan (IAP), the issue of the structural transformation (ST) of the Moroccan economy is highly topical and of great interest to the Kingdom. This article examines, under external constraints and international openness, ST through the relationship between Foreign Direct Investment (FDI) and the diversification and sophistication of Moroccan exports, over the period from 1995 to 2022. After outlining the theoretical foundations of such a relationship, curiously neglected in the literature, it was specified and estimated by two ARDL (Auto Regressive Distributed Lag) models. The latter, supported by the cointegration bounds test highlighted the existence of a long-term link between FDI and export diversification on the one hand, and export sophistication on the other. However, the results showed a negative influence of FDI on the diversification of Moroccan exports. This negative influence was more significant on export sophistication. Consequently, during the study period, FDI did not play the desired role in the Moroccan economy's ST. It did not contribute to the enhancement of its productive structure, particularly its export structure, which suffered from a chronic double handicap: a low degree of diversification coupled with a lack of sophistication. The Moroccan economy has not reached the level of development required to leverage export diversification and sophistication in its ST.

Transmission Mechanisms of Oil Price Fluctuations on Prices

This paper aims to understand the effects of oil price fluctuations on the real economy and prices, using an ARDL model with quarterly data from 2007 to 2021. The results will help policy makers and economic actors to better understand the transmission mechanisms of oil price fluctuations on the economy and prices, which is important for oil-dependent economies like Morocco. The question is to what extent do oil price fluctuations affect the real economy and price levels in oil import-dependent countries, with a particular focus on the case of Morocco?. The results of the study show that the impact of economic variables on price levels depends on the duration. In the short run, economic growth has a limited inflationary effect, oil price fluctuations have a significant inflationary impact, the nominal exchange rate does not have a significant impact and the openness of the economy does not have a significant impact. In the long run, oil price fluctuations, the real effective exchange rate, and the rate of economic openness have a significant inflationary effect, while economic growth also has an inflationary effect. The competitiveness of the Moroccan economy is important for the stability of price levels in the long run

The Influence of Tourism on the Moroccan Economy

The Influence of Tourism on the Moroccan Economy

Empirical evaluation of the socio-economic impacts of renewable energies in Morocco by 2035: An input-output model

The objective of the study is to identify scenarios relating to solar and wind renewable energy technologies by 2035 in Morocco, and to simulate their socio-economic effects (GDP, Value added by sector and employment). This consists in calculating the effect of these scenarios in comparison with a trend scenario that extends recent developments and takes into account the industrial integration policy already decided on both solar and wind technologies. The methodology applied is based on a dynamic Input-Output (IO) model. Three simulation sce- narios are discussed in this study for the assessment of the socio-economic impacts of con- centrated solar power, photovoltaic and wind energy on the Moroccan economy during the period 2020-2035. Also, a comparative analysis between the scenarios developed and the tar- gets indicated in the national strategies, in terms of economic and job creation indicators, reveals a significant potential in terms of job creation and value added.

The influence of the financial crisis on the Moroccan economy

The influence of the financial crisis on the Moroccan economy

Macroeconomic stability factors of the USD/MAD exchange rate in the context of an open Moroccan economy

Macroeconomic stability factors of the USD/MAD exchange rate in the context of an open Moroccan economy