The impact of the slowdown in economic growth on the evolution of the failure of Moroccan companies

Abstract

The company constitutes the pillar of any economy, the disappearance of the firm has harmful repercussions at the economic and social level. As a result, business failure has attracted the interest of several researchers for several decades. The significant rise in the number of failing companies around the world, accentuated by the subprime crisis in 2008 and the health crisis in 2019, has underlined the importance of macroeconomic data in the study of business failure. In this sense, this communication aims to demonstrate the impact of economic growth and its components on the evolution of the number of failing Moroccan companies using the ordinary least squares method. Indeed, several studies have focused on the impact of economic growth measured by GDP. the evolution of business failure, that is to say in economic times the number of failures of failing companies increases, we wish through this work to estimate the impact of each component of GDP on the evolution of the number of failing businesses we will adopt the consumption approach in the calculation of GDP, that is to say, study the impact of the final consumption of households, investment and public expenditure on our endogenous variable in order to arrive For our purpose we will adopt the square proof method through a linear estimation. We were able to conclude that household final consumption and investment negatively impact the number of failing businesses, and public spending has a positive impact on business failure.

Keywords: Failure, Economic Growth, Econometrics,

Classification JEL: E10, 011

Type of article: Empirical study