Balance of payments constrained growth model: an Application for Morocco (1980-2018)

  • Anouar Majdoubi Faculty of Economics and Management of kenitra, Ibn tofail University kenitra, Morocco
  • Lalla Zhor Alaoui Omari Faculty of Economics and Management of kenitra, Ibn tofail University kenitra, Morocco
DOI: https://doi.org/10.5281/zenodo.4282431
Keywords: balance of payments, Thirlwall’s Law, ARDL, growth, import elasticity, Morocco

Abstract

The aim of this study is to test the validity of Thirlwall’s Law in Morocco from 1980 to 2018 period using an Autoregressive Distributed Lag (ARDL) Bounds testing approach. The empirical results suggest that import is co-integrated with relative price and income, and the actual growth rate was found to be equal to the predicted growth rate by the balance of payments. Thus, The thirlwall’s law holds for Morocco.  This study proposes, also, some policy recommendations to reduce the trade deficits.

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Published
2020-11-20
How to Cite
Majdoubi, A., & Alaoui Omari, L. Z. (2020). Balance of payments constrained growth model: an Application for Morocco (1980-2018). International Journal of Accounting, Finance, Auditing, Management and Economics, 1(3), 266-276. https://doi.org/10.5281/zenodo.4282431
Issue
Vol. 1 No. 3 (2020)
Section
Articles

Copyright (c) 2020 Anouar Majdoubi, Lalla Zhor Alaoui Omari

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.