Public Investment and Economic Growth in Morocco: An Econometric Analysis Using the ARDL Model

Abstract

The following research aims to contribute to the empirical literature on the efficiency of public investment in Morocco. We use the Auto Regressive Distributed Lag (ARDL) model to jointly capture the long-run relationship and the short-run dynamics between public investment and economic growth. Other variables such as the capital stock and the size of the employed labor force are also included in the model. The results indicate the absence of any correlation between public investment and economic growth in the short term. However, the impact of public investment on economic growth becomes negative in the long term.