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The Impact of Monetary Policy on Private Investment in Morocco: An Analysis Using a VECM Model
[L'impact de la politique monétaire sur l'investissement privé au Maroc : une analyse à l'aide d'un modèle VECM]

Author

Listed:
  • Khadija Essalhi

    (UCA - Université Cadi Ayyad [Marrakech])

  • Salah Eddine

    (UCA - Université Cadi Ayyad [Marrakech])

Abstract

The aim of this article is to analyze the relationship between monetary policy and private investment in Morocco. It explains how private sector investors react to changes in monetary policy decisions. Our study aims to understand the effect of monetary policy action on private investment in Morocco over the period 1995-2020, using the VECM method. The results indicate that in the long term, the policy rate and the money supply have a negative and significant impact on private investment, while the exchange rate and credit granted to the private sector have a positive and significant impact on private investment.

Suggested Citation

  • Khadija Essalhi & Salah Eddine, 2023. "The Impact of Monetary Policy on Private Investment in Morocco: An Analysis Using a VECM Model [L'impact de la politique monétaire sur l'investissement privé au Maroc : une analyse à l'aide d'un mo," Post-Print hal-04303914, HAL.
    • Handle: RePEc:hal:journl:hal-04303914
    DOI: 10.5281/zenodo.10123861
    Note: View the original document on HAL open archive server: https://hal.science/hal-04303914
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Private investment; Policy rate; Monetary policy; Investissement privé; taux directeur; Politique monétaire; African Scientific Journal; Investissement privé; taux directeur; Politique monétaire;
    All these keywords.

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