IDEAS home Printed from https://ideas.repec.org/p/zbw/diedps/272017.html
   My bibliography  Save this paper

The effectiveness of Morocco’s industrial policy in promoting a national automotive industry

Author

Listed:
  • Hahn, Tina
  • Auktor, Georgeta Vidican

Abstract

Since the 1980s, international production patterns have fundamentally changed, creating opportunities for developing countries to integrate into global value chains (GVCs). Morocco, which is among the first countries in the Middle East and North Africa to pursue an export-led economic policy, has used this opportunity, among others, to develop an automotive supplier industry, which became one of the country’s industrial lead-sectors. This paper analyses how industrial policy and industry-level dynamics contributed to the emergence of an automotive supplier industry. We find that, although Morocco achieved its overall goal of establishing such an industry, this industry remains limited to low-value activities. With the aim of deepening the level of integration into GVCs and acquiring a dynamic competitive advantage in the automotive sector, the nature and objective of industrial policy in Morocco has changed in the past couple of years. Instead of focusing primarily on its labour-cost advantage to attract lead-firms to localise in Morocco, decision-makers currently are taking a more systemic approach to industrial policy, focusing on fostering synergies across sectors, creating ecosystems for different parts of the value chain, and using targeted support measures for enhancing workforce capabilities and competencies. We find evidence for a tendency towards the co-design of policy measures by public and private stakeholders, which, if it persists, could lead the way towards a more effective industrial policy. The main challenge for the future of the automotive sector in Morocco lies in a stronger inclusion of local firms in the value chain and a gradual shift towards higher value added. This will require a stronger focus on developing advanced technological skills and a higher level of investment in research and development.

Suggested Citation

  • Hahn, Tina & Auktor, Georgeta Vidican, 2017. "The effectiveness of Morocco’s industrial policy in promoting a national automotive industry," IDOS Discussion Papers 27/2017, German Institute of Development and Sustainability (IDOS).
    • Handle: RePEc:zbw:diedps:272017
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/199517/1/die-dp-2017-27.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Okada, Aya, 2004. "Skills Development and Interfirm Learning Linkages under Globalization: Lessons from the Indian Automobile Industry," World Development, Elsevier, vol. 32(7), pages 1265-1288, July.
    2. Janet Currie & Ann Harrison, 2022. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 2, pages 15-42, World Scientific Publishing Co. Pte. Ltd..
    3. Gerald A McDermott & Rafael A Corredoira, 2010. "Network composition, collaborative ties, and upgrading in emerging-market firms: Lessons from the Argentine autoparts sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 308-329, February.
    4. N. Benabdejlil & Y. Lung & A. Piveteau, 2016. "L’émergence d’un pôle automobile à Tanger (Maroc)," Post-Print hal-02269949, HAL.
    5. Loewe, Markus & Al-Ayouty, Iman & Altpeter, Annegret & Borbein, Lisa & Chantelauze, Marc & Kern, Maximilian & Niendorf, Elisabeth & Reda, Malak, 2013. "Which factors determine the upgrading of small and medium-sized enterprises (SMEs)? The case of Egypt," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 76, number 76.
    6. Amirah El-Haddad & Jeremy Hodge & Nizar Manek, 2017. "The Political Economy of A Sector in Crisis: Industrial Policy and Political Connections in the Egyptian Automotive Industry," Working Papers 1112, Economic Research Forum, revised 06 2017.
    7. Altenburg, Tilman & Meyer-Stamer, JORG, 1999. "How to Promote Clusters: Policy Experiences from Latin America," World Development, Elsevier, vol. 27(9), pages 1693-1713, September.
    8. Lahcen Achy, 2013. "Structural Transformation and Industrial Policy in Morocco," Working Papers 796, Economic Research Forum, revised Nov 2013.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alain Piveteau, 2020. "The automotive sector in Morocco. Local manifestation of a global dynamic or decisive industrial emergence? [Le secteur automobile au Maroc. Manifestation locale d'une dynamique mondiale ou émergen," Post-Print hal-03021343, HAL.
    2. Hahn, Tina & Auktor, Georgeta Vidican, 2018. "Industrial policy in Morocco and its potential contribution to a new social contract," IDOS Discussion Papers 31/2018, German Institute of Development and Sustainability (IDOS).
    3. Anthony Harris & Anthony D'Agostino & Sara Litke-Farzaneh & Beryl Seiler & Matt Sloan, "undated". "Morocco Land Productivity Project: Evaluation Design Report," Mathematica Policy Research Reports f3fc788501b64608b17e1cb23, Mathematica Policy Research.
    4. Nizar Becheikh, 2021. "Political stability and economic growth in developing economies: lessons from Morocco, Tunisia and Egypt ten years after the Arab Spring," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(2), pages 229-251, June.
    5. Rim Ben Ayed Mouelhi & Monia Ghazali, 2021. "Structural transformation in Egypt, Morocco and Tunisia: Patterns, drivers and constraints," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(1), pages 35-61, January.
    6. Auktor, Georgeta Vidican, 2022. "The opportunities and challenges of Industry 4.0 for industrial development: A case study of Morocco's automotive and garment sectors," IDOS Discussion Papers 2/2022, German Institute of Development and Sustainability (IDOS).
    7. El-Haddad, Amirah, 2020. "Redefining the social contract in the wake of the Arab Spring: The experiences of Egypt, Morocco and Tunisia," World Development, Elsevier, vol. 127(C).
    8. Nizar Becheikh, 2021. "Political stability and economic growth in developing economies: lessons from Morocco, Tunisia and Egypt ten years after the Arab Spring," Post-Print hal-03583934, HAL.

    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. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    2. Simona, Gentile-Lüdecke & Axèle, Giroud, 2012. "Knowledge Transfer from TNCs and Upgrading of Domestic Firms: The Polish Automotive Sector," World Development, Elsevier, vol. 40(4), pages 796-807.
    3. Hampel-Milagrosa, Aimée & Loewe, Markus & Reeg, Caroline, 2015. "The Entrepreneur Makes a Difference: Evidence on MSE Upgrading Factors from Egypt, India, and the Philippines," World Development, Elsevier, vol. 66(C), pages 118-130.
    4. Saranga, Haritha & Schotter, Andreas P.J. & Mudambi, Ram, 2019. "The double helix effect: Catch-up and local-foreign co-evolution in the Indian and Chinese automotive industries," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    5. Oostendorp, Remco H. & Doan, Quang Hong, 2013. "Have the returns to education really increased in Vietnam? Wage versus employment effect," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 923-938.
    6. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    7. Haiwen Zhou, 2018. "Impact of international trade on unemployment under oligopoly," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(4), pages 365-379, May.
    8. Yannick LUNG & Bernard JULLIEN & Christophe MIDLER, 2016. "From the Logan to the Kwid. \r\nAmbidexterity, reverse and fractal innovation, design-to-cost: recipes from Renault\'s Entry strategy," Cahiers du GREThA (2007-2019) 2016-19, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Andrés Rodríguez-Clare, 2005. "Coordination Failure, Clusters, and Microeconomic Interventions," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2005), pages 1-41, August.
    10. Wim Naudé, 2007. "Peace, Prosperity, and Pro-Growth Entrepreneurship," WIDER Working Paper Series DP2007-02, World Institute for Development Economic Research (UNU-WIDER).
    11. Devashish Mitra, 2001. "Trade Liberalization, Labor Markets and Imperfect Competition," Economics Study Area Working Papers 29, East-West Center, Economics Study Area.
    12. Ner Artola & Eduardo Zepeda & Roberta Rabellotti & Raquel Gomes & Alessia Amighini & Claudio Maggi Campos & Arlindo Villaschi Filho & Carlo Pietrobelli & José Eduardo Cassiolato & Mario Davide Parrill, 2006. "Upgrading to Compete: Global Value Chains, Clusters, and SMEs in Latin America," IDB Publications (Books), Inter-American Development Bank, number 13158 edited by Roberta Rabellotti & Carlo Pietrobelli, February.
    13. Donald Robbins, 2003. "The impact of trade liberalization upon inequality in developing countries - A review of theory and evidence-," Documentos de Economía 3601, Universidad Javeriana - Bogotá.
    14. Harrison, Ann E. & McMillan, Margaret S., 2006. "Dispelling Some Myths About Offshoring," MPRA Paper 15615, University Library of Munich, Germany.
    15. Paola Perez-Aleman & Tommaso Ferretti, 2023. "Creating innovation capabilities for improving global health: Inventing technology for neglected tropical diseases in Brazil," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 84-114, March.
    16. Harrison, Ann E. & Scorse, Jason, 2008. "Do foreign-owned firms pay more?," MPRA Paper 15637, University Library of Munich, Germany.
    17. Pradhan, Jaya Prakash & Das, Keshab & Paul, Mahua, 2006. "Export-orientation of Foreign Manufacturing Affiliates in India: Factors, Tendencies and Implications," MPRA Paper 12338, University Library of Munich, Germany.
    18. Beyza Ural Marchand, 2019. "Inequality and Trade Policy: The Pro‐Poor Bias of Contemporary Trade Restrictions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 123-152, November.
    19. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.
    20. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).

    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:zbw:diedps:272017. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/ditubde.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.