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The impact of FDI on economic growth: an empirical study of Moroccan FDI

Author

Listed:
  • Chafik Bakour
  • Riad Abadli
  • Abahamid Mohamed Yassine

Abstract

The main objective of this article is to empirically examine the impact of foreign direct investment flows on growth in Morocco, for which we have designed an econometric model based on the Cobb-Douglas production function which allowed us to take into account also the contribution of human capital; in practice we used data extracted from the data centre for the development of the World Bank and cover the period 1976-2016. The results demonstrated a two-way causality between GDP and FDI, between GDP and human capital and between FDI and human capital. Thus, we have found that the mechanisms of interactions between these different variables are operational in the medium term. These results are of great importance on the one hand for the researchers because they answer partially on the questions of causal links between the economic growth and the FDI, and on the other hand for the public authorities by illuminating the strategies of opening and attraction of foreign capital.

Suggested Citation

  • Chafik Bakour & Riad Abadli & Abahamid Mohamed Yassine, 2022. "The impact of FDI on economic growth: an empirical study of Moroccan FDI," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 14(3), pages 246-257.
    • Handle: RePEc:ids:injams:v:14:y:2022:i:3:p:246-257
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