A spatial analysis of decentralization and regional disparities in Morocco

Abstract

This article examines the impact of decentralization on regional disparities in Morocco, focusing on the 12 administrative regions. The objective is to assess the effect of decentralization reforms implemented since the 2010s on economic and social disparities. The methodology combines fixed and random effects econometric models within a spatial econometrics framework, allowing for the analysis of region-specific dynamics. The study reveals that the increase in financial resources of local governments (CT) is linked to a rise in expenditures, without necessarily reducing regional disparities. Moreover, public investment does not have a significant impact on CT expenditures, while the financial autonomy of CTs is influenced by local institutional capacities. Regional gross domestic product (GDP) is not a key factor in CT expenditures, highlighting the importance of local specificities. In this regard, although decentralization has the potential to reduce regional disparities, its effectiveness in Morocco is hindered by institutional challenges, necessitating measures to strengthen local governance and improve coordination between central and regional levels.

Keywords: Decentralization, Regional disparities, Spatial analysis, Spatial econometrics, Regional governance.

Classification JEL: R12, R58, H77

Paper type: Empirical Research