Effectiveness analysis of monetary policy measures on the local investment projects financing: Moroccan subnational governments case

Analyse de l'efficacité des mesures de la politique monétaire sur le financement des projets d'investissement au niveau local: cas des collectivités territoriales marocaines

Es-Sellami Ayoub and Kehel Mohammed
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Es-Sellami Ayoub: ENCG - Ecole Nationale de Commerce et de Gestion - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar), UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)
Kehel Mohammed: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar), ENCG - Ecole Nationale de Commerce et de Gestion - UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)

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Abstract: The aim of this research is to analyse the relationship between monetary policy and the choice of investment projects at Moroccan Subnational governments. It sets out to explain how these authorities react to adjustments in monetary decisions. More precisely, our study seeks to understand the impact of changes in the key rate, made by Bank Al-Maghrib, on the use of credit and investment spending by local authorities during the period 2015-2024. The results of our analysis reveal a complex and non-linear relationship between these variables. According to economic theory, a cut in the key rate should encourage credit and stimulate investment, but the case of Morocco reveals a partial transmission of this logic. Indeed, some years have shown that favourable monetary conditions do not necessarily translate into an increase in credit or investment.

Keywords: Monetary policy; Key interest rate; Local investments; Subnational governments; Collectivités territoriales; Investissements locaux; Taux directeur; Politique monétaire (search for similar items in EconPapers)
Date: 2026-01-04
New Economics Papers: this item is included in nep-ara, nep-mon and nep-ppm
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Published in African Scientific Journal, 2026, 03 (33), ⟨10.5281/zenodo.18154349⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05442849

DOI: 10.5281/zenodo.18154349

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