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A product space perspective on structural change in Morocco

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  • Osorio-Rodarte,Israel
  • Lofgren,Hans

Abstract

Drawing on international trade data, this paper uses the product space approach to analyze changes in Morocco?s goods exports in 1990?2010 and future export priorities. The level of Morocco?s gross domestic product and its moderate growth match the predictions of product space analysis, informed by changes in the income potential of Morocco?s export basket, reflecting relatively strong capabilities (a high density) in products with relatively low potentials in income and diversification. Morocco?s peripheral position in the product space map matches its slow growth and points to the difficulty of diversification into more sophisticated products. Encouraging changes since 1990 include the development of a revealed comparative advantage for medium- and high-tech manufactures, which in 2010 represented around 40 percent of total goods exports. However, the number of goods involved is relatively small and this transformation has not sufficed to raise per capita growth to the average for middle-income countries. Export projections up to 2025 suggest that future developments will follow the trends of the past. Among sectors, high growth is likely for phosphate-based fertilizer exports. However, like edible oil products, which also may grow rapidly, phosphates are hampered by low income and diversification potentials. Along with various other manufactured products, electronics and the automotive industry are promising sectors that may offer more lasting positive contributions to Morocco?s future development. Beyond goods, Morocco?s policy makers should also consider the potential contributions of service exports, which in recent years have enjoyed rapid growth.

Suggested Citation

  • Osorio-Rodarte,Israel & Lofgren,Hans, 2015. "A product space perspective on structural change in Morocco," Policy Research Working Paper Series 7438, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7438
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
    3. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2012. "International Knowledge Diffusion and the Comparative Advantage of Nations," Working Paper Series rwp12-020, Harvard University, John F. Kennedy School of Government.
    4. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.
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    Cited by:

    1. Qyyum, Muhammad Abdul & Ali Shah, Syed Fahad & Qadeer, Kinza & Naquash, Ahmad & Yasin, Muhammad & Rehan, Mohammad & Tabatabaei, Meisam & Aghbashlo, Mortaza & Lee, Moonyong & Nizami, Abdul-Sattar, 2022. "Biowaste to bioenergy options for sustainable economic growth opportunities in developing countries: Product space model analysis and policy map development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).

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    Keywords

    Agribusiness&Markets; Commodities; Economic Theory&Research; Markets and Market Access; Water and Industry;
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