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Regional Inequality in a Growing Economy: The Case of Morocco

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  • Mahmoud Arbouch Eduardo Amaral Haddad
  • Eduardo Amaral Haddad

Abstract

AMorocco’s strong macroeconomic performance over the past two decades—anchored in infrastructure modernization, industrial diversification, and renewable energy leadership—has positioned it as a success story in the Global South. Yet these achievements mask persistent regional disparities that undermine inclusive development. Coastal regions such as Casablanca-Settat and Tangier-Tétouan-Al Hoceima dominate economic activity, while hinterland and southern provinces face structural disadvantages in employment, connectivity, and public services. Drawing on the Williamson hypothesis of an inverted U-shaped relationship between growth and inequality, this policy brief situates Morocco on the upward slope of rising regional disparities. It examines the historical roots of spatial imbalance, the limits of decentralization, and the structural concentration of growth in metropolitan hubs. While recent reforms, including the New Development Model (2021) and the Investment Charter (2022), aim to foster territorial equity, sustained progress will require a shift toward territorially sensitive policies that empower regions to drive more balanced and inclusive national development.

Suggested Citation

  • Mahmoud Arbouch Eduardo Amaral Haddad & Eduardo Amaral Haddad, 2025. "Regional Inequality in a Growing Economy: The Case of Morocco," Policy briefs on Economic Trends and Policies 2456, Policy Center for the New South.
    • Handle: RePEc:ocp:pbecon:p45_25
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    References listed on IDEAS

    as
    1. Lessmann, Christian, 2014. "Spatial inequality and development — Is there an inverted-U relationship?," Journal of Development Economics, Elsevier, vol. 106(C), pages 35-51.
    2. Uri Dadush & Hamza Saoudi, 2019. "Inequality in Morocco: An International Perspective," Research papers & Policy papers on Economic Trends and Policies 1912, Policy Center for the New South.
    3. Pierre-Alexandre Balland & Ron Boschma, 2021. "Complementary interregional linkages and Smart Specialisation: an empirical study on European regions," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1059-1070, June.
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