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What Mitigates Economic Growth Volatility in Morocco? : Remittances or FDI

Author

Listed:
  • Selmi, Refk

    (Campus Universitaire de la Manouba)

  • Bouoiyour, Jamal

    (University of Pau)

  • Miftah, Amal

    (University of Paris-Dauphine)

Abstract

The purpose of the paper is twofold. First, it seeks to meticulously analyze the volatility of economic growth and financial flows in the case of Morocco, i.e., remittances and Foreign Direct Investment. Second, it attempts to address the effects of these financial flows on the economic growth volatility. We provide strong evidence that remittances are less volatile than Foreign Direct Investment with respect to the duration, intensity and volatility clustering. Furthermore, remittances can mitigate the volatility of growth, while Foreign Direct Investment flows amplify it. Our results do not imply that financial flows should be privileged by Moroccan authorities. In fact, our results should encourage the government to implement proactive and favourable policies geared towards productive investment.

Suggested Citation

  • Selmi, Refk & Bouoiyour, Jamal & Miftah, Amal, 2016. "What Mitigates Economic Growth Volatility in Morocco? : Remittances or FDI," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(1), pages 65-102.
    • Handle: RePEc:ris:integr:0679
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    Cited by:

    1. Lisa Chauvet & Marin Ferry & Patrick Guillaumont & Sylviane Guillaumont Jeanneney & Sampawende J.-A. Tapsoba & Laurent Wagner, 2019. "Volatility widens inequality. Could aid and remittances help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 71-104, February.
    2. Amr Hosny, 2020. "Remittance Concentration and Volatility: Evidence from 72 Developing Countries," International Economic Journal, Taylor & Francis Journals, vol. 34(4), pages 553-570, October.
    3. Jamal Bouoiyour & Amal Miftah, 2017. "Do Migrants Transfer Political and Cultural Norms to Their Origin Country? Some Evidence From Some Arab Countries," Working Papers 1098, Economic Research Forum, revised 05 2017.

    More about this item

    Keywords

    Economic Growth Volatility; Remittances; FDI; Morocco; Generalized Autoregressive Conditional Heteroskedasticity (GARCH) Models;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • G00 - Financial Economics - - General - - - General

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