Is there a Proven Relationship Between the Economic Complexity of Moroccan Regions and their Well-being?

Ilyes Boumahdi () and Nouzha Zaoujal
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Ilyes Boumahdi: National Institute of Statistics and Applied Economics
Nouzha Zaoujal: National Institute of Statistics and Applied Economics

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 172, 4968-4990

Abstract: Abstract Intangible capacities such as creativity, innovation and know-how are increasingly becoming essential conditions for territorial development. These capacities refer to the paradigm of economic complexity which synthesizes the competitive capacity of territories. Also, we calculated the regional economic complexity of Morocco as well as indices related to the diversification of regions and the ubiquity of activities. We then highlight the link between the complexity of regions and their well-being. For this, we used a microdata base of nearly 8000 industrial establishments over the period from 1990 to 2015 for the twelve Moroccan regions and 223 activities. Thus, it turns out that Moroccan regions form a space-product network around nuclei of different densities illustrating productive systems of such different maturities. This reveals the emergence of ecosystems around complementary activities leading to an increase in the complexity of the regions associated with them. In addition, regions of high complexity exhibit high diversity combined with low ubiquity with relatively stable regional dynamics between 1990 and 2015. The complexity spreads from the economic capital Casablanca-Settat to the neighboring regions with a high intermediate complexity then those adjacent with a low intermediate complexity before spreading to the other southern regions with low complexity. Finally, it turns out that a high level of economic complexity is linked to a high level of certain components of objective well-being. Thus, high economic complexity is linked to such high economic development accompanied by qualified human capital and advanced innovation improving their living conditions and health with, however, low levels in terms of the environment and governance.

Keywords: Complexity; Ubiquity; Diversity; Revealed comparative advantage; Well-being (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02115-4

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