Financial Sector Reform and Economic Growth in Morocco: An Empirical Analysis

Networks Financial Institute at Indiana State University, 2007-WP-28

39 Pages Posted: 31 Oct 2018

See all articles by M. Kabir Hassan

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Jung-Suk Yu

School of Urban Planning & Real Estate Studies, Dankook University

Date Written: 2007

Abstract

This study analyzes the impact of financial sector reforms from the early 1990s on, promoting economic growth in Morocco. To derive feasible policy implications, we estimate not only pooled regressions, but also variance decompositions of GDP growth rates to examine what proxy measures of financial development are most important in economic growth over time and how much they contribute to economic growth across geographic regions and income groups. We find strong linkages between financial development and economic growth in high-income OECD countries, but not in East Asian & Pacific, South Asian, and Sub-Saharan African regions, in the short run. Therefore, it may be necessary for Morocco to make different policy efforts to achieve steady economic growth in the long run.

Keywords: Financial Development, Growth, Pooled Regression, Granger Causality Tests, Morocco

JEL Classification: G21, O16, C33

Suggested Citation

Hassan, M. Kabir and Yu, Jung-Suk, Financial Sector Reform and Economic Growth in Morocco: An Empirical Analysis (2007). Networks Financial Institute at Indiana State University, 2007-WP-28, Available at SSRN: https://ssrn.com/abstract=3263193 or http://dx.doi.org/10.2139/ssrn.3263193

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Jung-Suk Yu

School of Urban Planning & Real Estate Studies, Dankook University ( email )

152, Jukjeon-ro, Suji-gu, Yongin-si
Gyeonggi-do, 16890
Korea, Republic of (South Korea)

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