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Product Space Perspective on Structural Change in Morocco

Author

Listed:
  • Osorio Rodarte Israel
  • Lofgren Hans

    (The World Bank Group – Development Prospects Group, 1818 H St NW MC2-550A, Washington, DC 20433, USA)

Abstract

Drawing on international trade data, this paper uses the product space approach to analyze changes in Morocco’s goods exports in 1990–2010 and future export priorities. The level and moderate growth of Morocco’s gross domestic product match the predictions of product space analysis, informed by changes in the income potential of Morocco’s export basket, reflecting relatively strong capabilities in products with a relatively low potential to contribute to income growth and diversification. Morocco’s peripheral position in the product space points to the difficulty of diversification into more sophisticated products. Encouraging changes since 1990 include the development of a revealed comparative advantage in medium- and high-tech manufactures. However, the number of goods involved is relatively small and this transformation has not sufficed to raise per capita growth to the average for middle-income countries. Among sectors, high growth is likely for phosphate-based fertilizer exports. However, phosphates are hampered by low income and diversification potentials. Along with various other manufactured products, electronics and the automotive industry are promising sectors that may offer more lasting positive contributions. Beyond goods, policy makers should also consider the potential contributions of service exports, which in recent years have enjoyed rapid growth.

Suggested Citation

  • Osorio Rodarte Israel & Lofgren Hans, 2016. "Product Space Perspective on Structural Change in Morocco," Review of Middle East Economics and Finance, De Gruyter, vol. 12(2), pages 175-200, August.
    • Handle: RePEc:bpj:rmeecf:v:12:y:2016:i:2:p:175-200:n:3
    DOI: 10.1515/rmeef-2016-0003
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    References listed on IDEAS

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    3. Ricardo Hausmann & Bailey Klinger, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," CID Working Papers 128, Center for International Development at Harvard University.
    4. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.
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    Cited by:

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