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Structural change and labour productivity growth in Morocco

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  • Moussir, Charaf-Eddine
  • Chatri, Abdellatif

Abstract

This paper examines if Morocco has engaged in a structural transformation process. The analysis of the economic structure reveals a structural inertia, linked to a volatile agricultural sector, a poorly and weak integrated industrial and service sector. The results of the decomposition show that the intrasectoral component (Within) would account for much of the growth in labour productivity. The econometric analysis examined the determinants of this structural transformation. Our findings suggest an increase in income levels to encourage diversification of FDI as well as new opportunities for innovation. The need to invest in education and human capital was also identified. The flexibility of the labour market, the level of inflation and the financial system represent a major obstacle to improving the competitiveness of the economy, which could allow the emergence of new productive activities.

Suggested Citation

  • Moussir, Charaf-Eddine & Chatri, Abdellatif, 2020. "Structural change and labour productivity growth in Morocco," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 353-358.
    • Handle: RePEc:eee:streco:v:53:y:2020:i:c:p:353-358
    DOI: 10.1016/j.strueco.2019.06.005
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    References listed on IDEAS

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    6. Gaaitzen de Vries & Marcel Timmer & Klaas de Vries, 2015. "Structural Transformation in Africa: Static Gains, Dynamic Losses," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 674-688, June.
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    Cited by:

    1. Muhammad Tashfiq Huq & Masaru Ichihashi, 2023. "Prospective Accelerating Sectors to Attain Sustainable Development in Bangladesh Economy: Findings from a Sectoral Approach Using Input-Output Analysis," Sustainability, MDPI, vol. 15(3), pages 1-23, February.
    2. Norbu, Nyingtob Pema & Tateno, Yusuke & Bolesta, Andrzej, 2021. "Structural transformation and production linkages in Asia-Pacific least developed countries: An input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 510-524.
    3. Diane Coyle & Jen‐Chung Mei, 2023. "Diagnosing the UK productivity slowdown: which sectors matter and why?," Economica, London School of Economics and Political Science, vol. 90(359), pages 813-850, July.
    4. Nguenda Anya, Saturnin Bertrand & Nzepang, Fabrice, 2022. "The role of the separation of democratic powers on structural transformation in Sub-Saharan Africa," Economic Systems, Elsevier, vol. 46(4).
    5. Jorge Antunes & Goodness C. Aye & Rangan Gupta & Peter Wanke & Yong Tan, 2020. "Endogenous Long-Term Productivity Performance in Advanced Countries: A Novel Two-Dimensional Fuzzy-Monte Carlo Approach," Working Papers 2020111, University of Pretoria, Department of Economics.
    6. MOUSSIR Charaf-Eddine & LIOUAEDDINE Mariem, 2023. "Foreign Direct Investment, Foreign Certification And Firm Performance In Morocco: Evidence From The World Bank Enterprise Survey," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(3), pages 198-213, December.
    7. Tévécia Ronzon & Susanne Iost & George Philippidis, 2022. "Has the European Union entered a bioeconomy transition? Combining an output-based approach with a shift-share analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8195-8217, June.

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    More about this item

    Keywords

    Structural transformation; Productivity; Sectoral reallocation; Morocco;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F15 - International Economics - - Trade - - - Economic Integration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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