Impact of Morocco-ECOWAS Economic Relations on Economic Growth in Morocco: An Analysis Using the ARDL Model

Abstract

Over the last decade, Morocco has undertaken numerous reforms in order to successfully integrate itself into the global economy in general, and Africa in particular, with the aim of diversifying and strengthening its competitive export potential.In fact, the analysis of trade relations between Morocco and ECOWAS reveals an increasing volume of trade, reflecting a continuous dynamization of their commercial relations. A similar trend is observed in foreign direct investment, which has been growing steadily over the last few years, reflecting Morocco’s desire to become a major player in the development of the African continent.The analysis of Morocco’s trade opening and foreign direct investment (FDI) in ECOWAS on Morocco’s economic growth, using ARDL (Autorégressive distribution Lag) modelling, shows that Moroccan foreign direct investment to ECOWAS has a significant impact on its GDP per capita in the short and long term. With regard to bilateral trade between the two partners, no long-term equilibrium relationship could be established due to the still low weight of trade volumes.