The Competitiveness of Moroccan Export and its Determinants

Abstract

This research encompasses two distinct parts. The first phase involves assessing the industries in which Moroccan exports demonstrate a comparative advantage from 2002 to 2022, utilizing the Revealed Comparative Advantage (RCA) index. To achieve this, data on Moroccan exports and world exports for different industries are collected, incorporating detailed information on product categories and trade volumes. The RCA index, as developed by Balassa (1965), has been computed using these datasets, and a comparative analysis has been performed to determine industries where Morocco enjoys a comparative advantage (Balassa, 1965). Our RCA analysis sorted out a categorization of 3 three different set of industries, distinguishing between industries with high RCA values ensuring sustained competitiveness, emerging sectoral potentials with increasing RCA values, and finally industries facing challenges with declining or fluctuating RCA values. The second part of the thesis employs a robust empirical analysis, employing panel data models and statistical tests, shedding light on the intricate dynamics shaping export competitiveness in Morocco. The amalgamation of these two components contributes to a holistic understanding of the subject, presenting policymakers and researchers with nuanced insights. In this empirical study, we investigate the determinants of export competitiveness in Moroccan industries. Employing a panel data approach, our research model encompasses key variables, including the Revealed Comparative Advantage (RCA) index as the dependent variable. Initially focusing on the Fixed Effects (FE) regression model, our analysis reveals nuanced relationships between these variables. Subsequently, we integrate insights from the Random Effects (RE) regression model, the Panel Effects (PE) regression model. Results shed light on the intricate dynamics shaping export competitiveness in Morocco. Drawing on existing literature and cross-referencing, this study contributes to the broader understanding of economic growth and trade dynamics, providing valuable insights for policymakers and researchers alike.