The impact of the global financial crisis on Moroccan exports: a gravity model approach

Abdelmounaim Lahrech, Anass Faribi, Husam-Aldin N. Al-Malkawi and Kevin Sylwester

African Journal of Economic and Management Studies, 2018, vol. 10, issue 1, 102-115

Abstract: Purpose - The purpose of this paper is to examine the impact of the global financial crisis (GFC) on Morocco’s export performance employing a gravity model framework. Design/methodology/approach - The authors investigate trade flows between Morocco and its 18 major trading partners from 2001 to 2015. The authors employ a trade gravity model using a first-order Taylor approximation of multilateral resistance terms and estimate by OLS and PPML. Findings - Morocco’s export performance was affected by theGFC. The authors find evidence that the fall in aggregate demand from Morocco’s trading partners, particularly in Europe, led to a fall in its exports. The authors also find that Morocco’s exports are positively correlated with the market size of its partner but negatively associated with distance. Originality/value - This study contributes to the literature in two distinct ways. First, it examines variables affecting export performance in one of the emerging markets in the Middle East and North Africa region. Second, it assesses empirically whether there is a relationship between theGFCand the decline in Moroccan exports. The study also provides a number of important implications for policy makers and academics.

Keywords: Gravity model; Global financial crisis; Moroccan exports; Multilateral resistance terms; PPML; Taylor approximation (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ajemsp:ajems-03-2018-0075

DOI: 10.1108/AJEMS-03-2018-0075

Access Statistics for this article

African Journal of Economic and Management Studies is currently edited by Prof John Kuada

More articles in African Journal of Economic and Management Studies from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().