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The Effects of FDI on the Moroccan Economy: An Empirical Estimate from a Structural Model

Author

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  • Souad BANNOUR Ep SFAR
  • Kais MTAR

Abstract

The primary aim of the present article is to study whether foreign direct investment (FDI) exerts positive or negative effects on the Moroccan economy. Thus, through a structural model of simultaneous equations, the effects of FDI were examined in terms of economic growth, foreign trade, human capital and domestic investment in Morocco. The empirical results of this study show that FDI clearly demonstrates significant and positive effects on the first three variables whereas, it appears that there is no significant correlation with the domestic investment variable.

Suggested Citation

  • Souad BANNOUR Ep SFAR & Kais MTAR, 2017. "The Effects of FDI on the Moroccan Economy: An Empirical Estimate from a Structural Model," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(3), pages 266-273.
    • Handle: RePEc:asi:ajemod:v:5:y:2017:i:3:p:266-273:id:905
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    Cited by:

    1. Chibalamula, Haggai Chibale & Evans, Yeboah & Kachelo, Mukuka & Bamwesigye, Dastan, 2023. "The Effect of Foreign Direct Investment and Trade Openness on Economic Growth: Evidence from Five African Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(1), January.

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