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Factors of FDI and their Impact on the Moroccan Economy: An Empirical Investigation Using the ARDL Approach

Author

Listed:
  • Anass Arbia
  • Khalid Sobhi
  • Mohamed Karim

Abstract

Foreign direct investment (FDI) has gained importance in recent years as an essential component of economic growth. This work has a dual focus- on the one hand, it aims to identify the main determinants of FDI in Morocco, and on the other, it attempts to measure the effect of FDI on the Moroccan economy over the period 1990-2020. We have adopted an approach using the Autoregressive Staggered Lag (ARDL) model, as proposed by Pesaran et al. (2001). The main findings of this study indicate that high economic performance, well-trained human capital, economic stability, market size, and trade openness are the main determinants of FDI. FDI has a positive and significant effect on the Moroccan economy in both the short and long term.

Suggested Citation

  • Anass Arbia & Khalid Sobhi & Mohamed Karim, 2023. "Factors of FDI and their Impact on the Moroccan Economy: An Empirical Investigation Using the ARDL Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(10), pages 1-32, October.
    • Handle: RePEc:ibn:ijefaa:v:15:y:2023:i:10:p:32
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    References listed on IDEAS

    as
    1. Osei, Michael J. & Kim, Jaebeom, 2020. "Foreign direct investment and economic growth: Is more financial development better?," Economic Modelling, Elsevier, vol. 93(C), pages 154-161.
    2. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    3. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    4. Soltani Hassen & Ochi Anis, 2012. "Foreign Direct Investment (FDI) and Economic Growth: an approach in terms of cointegration for the case of Tunisia," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(4), pages 1-13.
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    Cited by:

    1. Ibnouzahir Youssef & Herraz Ismail & Bassite Imad & Elkhattab Younes & Hefnaoui Ahmed, 2025. "Okun’S Law And Phillips Curve Revisited: Nonlinear Evidence From The Moroccan Economy," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 71-86, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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