Export Diversification and Economic Growth in Morocco: An Econometric Analysis

Abstract

Since the work of Imbs and Wacziarg (2003), most recent studies confirm a positive relationship between export diversification and income per capita (Cadot et al., 2011; Agosin et al., 2012). Therefore, export diversification appears as an important lever for economic growth. This type of export strategy contradicts the conventional theories of international trade, such as ricardien model, which considers that countries should specialize in the production of goods for which they have a comparative advantage. However, recent literature and international experience have shown that more diversified countries tend to have faster and inclusive economic growth (Hesse, 2009). Thereby, export diversification can also help to improve international competitiveness, especially in developing contries. For the case of Morocco, this conclusion suggests that greater stage of export diversification would lead to a higher level of economic development.