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Using Foreign Direct Investment to Upgrade and Diversify Exports from Morocco: Opportunities and Challenges in Comparative Perspective

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  • Theodore H. Moran

Abstract

Developing countries that manage to upgrade and diversify their export profile grow more rapidly and achieve greater welfare gains than countries that simply export larger volumes of what they have traditionally produced. This discussion paper examines what market imperfections and other impediments make the task of using FDI for structural transformation so difficult. Drawing on country case studies from Malaysia, Costa Rica, the Czech Republic, and South Africa, the paper identifies best practices for making progress, on the one hand, and examining impediments that lead to failure, on the other. This study has been prepared to serve as the basis for a workshop at which on-the-ground practitioners in Morocco can view their country’s efforts at structural transformation in light of similar experiences elsewhere. The objective is to highlight accomplishments and raise questions about future obstacles for Morocco’s aerospace sector, for the automotive cluster in Tangier Med, for OCP, and for investment promotion via the Moroccan Agency in Charge of Promoting Foreign Direct Investment .

Suggested Citation

  • Theodore H. Moran, 2016. "Using Foreign Direct Investment to Upgrade and Diversify Exports from Morocco: Opportunities and Challenges in Comparative Perspective," Research papers & Policy papers 1603, Policy Center for the New South.
    • Handle: RePEc:ocp:rpaper:pp-16/03
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    References listed on IDEAS

    as
    1. Farole, Thomas & Winkler, Deborah, 2014. "Does FDI Work for Africa? Assessing Local Spillovers in a World of Global Value Chains," World Bank - Economic Premise, The World Bank, issue 135, pages 1-6, February.
    2. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    3. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    4. Theodore H. Moran, 2014. "Foreign Investment and Supply Chains in Emerging Markets: Recurring Problems and Demonstrated Solutions," Working Paper Series WP14-12, Peterson Institute for International Economics.
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    More about this item

    Keywords

    Foreign Direct Investment; diversification; structural transformation; exports; growth; market failures; Morocco; Aerospace Cluster; Automotive Hub; competitiveness;
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