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Do Business Services matter for Innovation, Productivity, and Exports? Morocco’s Manufacturing Sector Story

Author

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  • Achy, Lahcen
  • Basri, Amine

Abstract

Business services have been overlooked in explaining observed variability in firms’ productive performance and their propensity to innovate, and export. This paper contributes to the scarce empirical literature on the issue using Morocco’s manufacturing sector firm level data. Three conclusions emerge from the paper. First, less than one Moroccan manufacturing firm out of five has already benefited from business services. Those firms that never used business services either don’t perceive the benefits they can spark, or they see them but can’t afford the cost involved. Second, firms using business services tend to be more likely to engage in innovative activities. Third, demand on business services tend to be negatively associated with the likelihood to be involved in export activity. One would expect that the use of business services improves firms’ competitiveness. Many Morocco’s exporting firms, however, operate in the garment sector and their activities tend to be confined to subcontracting for foreign suppliers.

Suggested Citation

  • Achy, Lahcen & Basri, Amine, 2009. "Do Business Services matter for Innovation, Productivity, and Exports? Morocco’s Manufacturing Sector Story," MPRA Paper 112010, University Library of Munich, Germany, revised Feb 2022.
  • Handle: RePEc:pra:mprapa:112010
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    References listed on IDEAS

    as
    1. Aija Leiponen, 2005. "Organization of Knowledge and Innovation: The Case of Finnish Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 12(2), pages 185-203.
    2. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 435-458, May.
    3. Ina Drejer, 2002. "Business Services as a Production Factor," Economic Systems Research, Taylor & Francis Journals, vol. 14(4), pages 389-405, December.
    4. José A. Camacho & Mercedes Rodríguez, 2005. "How innovative are services? an empirical analysis for Spain," The Service Industries Journal, Taylor & Francis Journals, vol. 25(2), pages 253-271, March.
    5. Lahcen Achy, 2013. "Structural Transformation and Industrial Policy in Morocco," Working Papers 796, Economic Research Forum, revised Nov 2013.
    6. Marcel Fafchamps & Said El Hamine & Albert Zeufack, 2008. "Learning to Export: Evidence from Moroccan Manufacturing †," Journal of African Economies, Centre for the Study of African Economies, vol. 17(2), pages 305-355, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Business Services; Manufacturing Firms; Innovation; Exports; Developing Countries; Morocco.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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