Azeroual, M. (2016), The Impact of Foreign Direct Investment on the Productivity Growth in the Moroccan Manufacturing Sector: Is Source of FDI important?
The
Impact of Foreign Direct Investment on the Productivity Growth in the
Moroccan Manufacturing Sector: Is Source of FDI important?
Par : Azeroual Mohamed
Abstract: This paper analyzes the different impacts of foreign investments originate from France and Spain on the Total Factor Productivity (TFP) related to the manufacturing industries sector in Morocco. In this direction, we used Generalized Method of Moments, (GMM System) in dynamic panels for a subset of 22 branches ofthis sector between 1985 and 2012. We have 616 observations (22 sectors and 28 years). The main results show that considering the source country of investment in particular those originate from France and Spain, the TFP is differently impacted. Indeed, the impact of French investments on TFP is negative with a statistical significance, especially in medium and high level technology industries. As for the Spanish investment, the impact is positive and statistically significant regardless the considered technology level classification. The negative impact of French investment on TFP in the scope of medium and high level technology can be mainly explained by the effect of firms' competition due to (i) the gap in terms of productivity between local and French companies and to (ii) the importance of the investment rate held by the French side with a control ability on technological transfer.
Keywords: foreign presence, manufacturing industries sector in Morocco, total factor productivity, foreign investment, source country, technological transfer, absorptive capability
JEL Classification: C33, F21
To cite this article : Azeroual, M. (2016), The Impact of Foreign Direct Investment on the Productivity Growth in the Moroccan Manufacturing Sector: Is Source of FDI important?, Journal of International and Global Economic Studies, Volume 9, Number 1, pp. 29-45.
To download a full-text article : The Impact of Foreign Direct Investment on the Productivity Growth in the Moroccan Manufacturing Sector: Is Source of FDI important?
Par : Azeroual Mohamed
Abstract: This paper analyzes the different impacts of foreign investments originate from France and Spain on the Total Factor Productivity (TFP) related to the manufacturing industries sector in Morocco. In this direction, we used Generalized Method of Moments, (GMM System) in dynamic panels for a subset of 22 branches ofthis sector between 1985 and 2012. We have 616 observations (22 sectors and 28 years). The main results show that considering the source country of investment in particular those originate from France and Spain, the TFP is differently impacted. Indeed, the impact of French investments on TFP is negative with a statistical significance, especially in medium and high level technology industries. As for the Spanish investment, the impact is positive and statistically significant regardless the considered technology level classification. The negative impact of French investment on TFP in the scope of medium and high level technology can be mainly explained by the effect of firms' competition due to (i) the gap in terms of productivity between local and French companies and to (ii) the importance of the investment rate held by the French side with a control ability on technological transfer.
Keywords: foreign presence, manufacturing industries sector in Morocco, total factor productivity, foreign investment, source country, technological transfer, absorptive capability
JEL Classification: C33, F21
To cite this article : Azeroual, M. (2016), The Impact of Foreign Direct Investment on the Productivity Growth in the Moroccan Manufacturing Sector: Is Source of FDI important?, Journal of International and Global Economic Studies, Volume 9, Number 1, pp. 29-45.
To download a full-text article : The Impact of Foreign Direct Investment on the Productivity Growth in the Moroccan Manufacturing Sector: Is Source of FDI important?
Mohamed Azeroual