Structural change and labour productivity growth in Morocco

This paper examines if Morocco has engaged in a structural transformation process. The analysis of the economic structure reveals a structural inertia, linked to a volatile agricultural sector, a poorly and weak integrated industrial and service sector. The results of the decomposition show that the intrasectoral component (Within) would account for much of the growth in labour productivity. The econometric analysis examined the determinants of this structural transformation. Our findings suggest an increase in income levels to encourage diversification of FDI as well as new opportunities for innovation. The need to invest in education and human capital was also identified. The flexibility of the labour market, the level of inflation and the financial system represent a major obstacle to improving the competitiveness of the economy, which could allow the emergence of new productive activities. (C) 2019 Elsevier B.V. All rights reserved.