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What Mitigates Economic Growth Volatility in Morocco? : Remittances or FDI


  • Selmi, Refk

    () (Campus Universitaire de la Manouba)

  • Bouoiyour, Jamal

    () (University of Pau)

  • Miftah, Amal

    () (University of Paris-Dauphine)


The purpose of the paper is twofold. First, it seeks to meticulously analyze the volatility of economic growth and financial flows in the case of Morocco, i.e., remittances and Foreign Direct Investment. Second, it attempts to address the effects of these financial flows on the economic growth volatility. We provide strong evidence that remittances are less volatile than Foreign Direct Investment with respect to the duration, intensity and volatility clustering. Furthermore, remittances can mitigate the volatility of growth, while Foreign Direct Investment flows amplify it. Our results do not imply that financial flows should be privileged by Moroccan authorities. In fact, our results should encourage the government to implement proactive and favourable policies geared towards productive investment.

Suggested Citation

  • Selmi, Refk & Bouoiyour, Jamal & Miftah, Amal, 2016. "What Mitigates Economic Growth Volatility in Morocco? : Remittances or FDI," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(1), pages 65-102.
  • Handle: RePEc:ris:integr:0679

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    Cited by:

    1. Jamal Bouoiyour & Amal Miftah, 2017. "Do Migrants Transfer Political and Cultural Norms to Their Origin Country? Some Evidence From Some Arab Countries," Working Papers 1098, Economic Research Forum, revised 05 2017.

    More about this item


    Economic Growth Volatility; Remittances; FDI; Morocco; Generalized Autoregressive Conditional Heteroskedasticity (GARCH) Models;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • G00 - Financial Economics - - General - - - General


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