Morocco's Participation in Global Value Chains and Implications for Foreign Trade
In the context of globalization, the activity making up the value chain has been fragmented and dispersed across business networks around the world. Globalization of the value chain results in the participation of several countries at different levels. Our work is to examine the level of Morocco's participation in Global Value Chains (GVCs) and the implications for its foreign trade. Our analysis shows that the country is improving its participation rate in GVCs, which exceeds the average participation rate of developing countries, but this participation is driven by upstream rather than downstream activities. Indeed, upstream integration is mainly related to exports of raw materials and some intermediate products. Our analysis also shows that Morocco, during the period studied, is positioning increasingly downstream of GVCs. The decomposition of the country's gross exports identifies the implications of this participation in foreign trade measured in terms of value added (VA). Indeed, gross exports have experienced a sharp increase during the period studied. This evolution is driven by the growth of foreign value added more than that of domestic value added.
Copyright (c) 2021 Islam Jaafari, Mourad Zenasni
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