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Economic Policies, Poverty, and Inequality in Morocco: A CGE Microsimulation Analysis

Touhami Abdelkhalek, Dorothée Boccanfuso, Luc Savard

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Abstract

Over several years, Morocco has been part of a new dynamic for the design of economic policies, including trade liberalization and foreign direct investment (FDI) incentives. The various dimensions of the economic and social impact of these policies must be quantified and analyzed. In this paper, we apply a microsimulation computable general equilibrium model to analyze the above-mentioned reforms in the Moroccan economy. Our results show that FDI in the tourism sector is the most beneficial. This result is important since policy makers in Morocco have targeted this sector explicitly for their development and poverty reduction strategies.

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What this paper is about

Over several years, Morocco has been part of a new dynamic for the design of economic policies, including trade liberalization and foreign direct investment (FDI) incentives. The various dimensions of the economic and social impact of these policies must be quantified and analyzed. In this paper, we apply a microsimulation computable general equilibrium model to analyze the above-mentioned reforms in the Moroccan economy. Our results show that FDI in the tourism sector is the most beneficial. This result is important since policy makers in Morocco have targeted this sector explicitly for their development and poverty reduction strategies.

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Available abstract

Over several years, Morocco has been part of a new dynamic for the design of economic policies, including trade liberalization and foreign direct investment (FDI) incentives. The various dimensions of the economic and social impact of these policies must be quantified and analyzed. In this paper, we apply a microsimulation computable general equilibrium model to analyze the above-mentioned reforms in the Moroccan economy. Our results show that FDI in the tourism sector is the most beneficial. This result is important since policy makers in Morocco have targeted this sector explicitly for their development and poverty reduction strategies.

Key concepts: Computable general equilibrium, Economics, Poverty, Microsimulation, Tourism, Foreign direct investment, Incentive, Poverty reduction

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