IDEAS home Printed from https://ideas.repec.org/p/ocp/rpaper/rp0523.html
   My bibliography  Save this paper

Production Networks, Sectoral Shocks and Aggregate Volatility in a Developing Economy: Insights From Morocco

Author

Listed:
  • Ali Elguellab
  • Elhadj Ezzahid

Abstract

The role of the production network in shock propagation has been an issue of considerable interest since the Great Recession. However, the empirical literature has only focused on advanced and emerging countries. This paper aims to contribute to filling this gap by examining the case of Morocco, a developing country belonging to the lower-middle-income group. The question is whether its production network is a factor in amplifying idiosyncratic industry-level shocks or, conversely, a resilience factor. Overall, the findings indicate that this network is relatively sparse and balanced, compared to the sample of 66 countries for which input-output tables were published by the OECD in 2022. Idiosyncratic industry-level shocks have therefore a limited influence on aggregate volatility. In these conditions, it is unlikely that the Moroccan production network would serve as a significant propagation factor for sectoral shocks to the rest of the economy.

Suggested Citation

  • Ali Elguellab & Elhadj Ezzahid, 2023. "Production Networks, Sectoral Shocks and Aggregate Volatility in a Developing Economy: Insights From Morocco," Research papers & Policy papers 1972, Policy Center for the New South.
    • Handle: RePEc:ocp:rpaper:rp0523
    as

    Download full text from publisher

    File URL: https://www.policycenter.ma/sites/default/files/2023-11/RP_05-23%20%28Ali%20Elguellab%20%26%20Elhadj%20Ezzahid%29.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baqaee, David Rezza & Farhi, Emmanuel, 2018. "Macroeconomics with Heterogeneous Agents and Input-Output Networks," CEPR Discussion Papers 13006, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiang, Zhengyang & Richmond, Robert J., 2023. "Origins of international factor structures," Journal of Financial Economics, Elsevier, vol. 147(1), pages 1-26.
    2. Baqaee, David Rezza & Farhi, Emmanuel & Sangani, Kunal, 2021. "The Supply-Side Effects of Monetary Policy," CEPR Discussion Papers 15702, C.E.P.R. Discussion Papers.
    3. Caraiani, Petre, 2019. "Oil shocks and production network structure: Evidence from the OECD," Energy Economics, Elsevier, vol. 84(C).
    4. Baqaee, David Rezza & Farhi, Emmanuel, 2018. "The Microeconomic foundations of Aggregate Production Functions," CEPR Discussion Papers 13362, C.E.P.R. Discussion Papers.
    5. Raffaele Giammetti & Alberto Russo & Mauro Gallegati, 2020. "Key sectors in input–output production networks: An application to Brexit," The World Economy, Wiley Blackwell, vol. 43(4), pages 840-870, April.
    6. Caraiani, Petre, 2022. "The impact of oil supply news shocks on corporate investments and the structure of production network," Energy Economics, Elsevier, vol. 110(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ocp:rpaper:rp0523. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Policy Center for the New South's Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/ocppcma.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.