Fiscal Decentralization and Economic Growth in Morocco: A Panel Cointegration Analysis

Authors

  • Meriem Miri Abdelmalek Essaadi University, faculty of Economics, Tangier, Morocco
  • El Hassan Taacha Abdelmalek Essaadi University, faculty of Economics, Tangier, Morocco
  • Mohamed Ayman Benatia Mohammed V University, Faculty of Economics, Rabat, Morocco

Abstract

This article focuses on the effects of fiscal decentralization on economic growth in Morocco, taking into account three dimensions: expenditure decentralization, revenue decentralization and the composite of these two indices. It uses a co-integration panel approach to separate long run effects from short run dynamics; By using and revising the set of data generally used in these empirical analyses. The results show that fiscal decentralization can lead to significant long-term economic growth (particularly significant for revenue decentralization), but in the short-term, this leads to a decrease in economic growth. Indeed, short-term results show that fiscal decentralization generates in the very short term a decrease in economic growth before improving over time until reaching a long-term increase between 2003 and 2014 in Morocco.

Keywords: fiscal decentralization, economic growth, Morocco

JEL Classifications: C2, H7

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Published

2018-02-19

How to Cite

Miri, M., Taacha, E. H., & Benatia, M. A. (2018). Fiscal Decentralization and Economic Growth in Morocco: A Panel Cointegration Analysis. International Journal of Economics and Financial Issues, 7(6), 192–201. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/5717

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Articles