Balance of payments constrained growth model: an Application for Morocco (1980-2018)
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.
Copyright (c) 2020 Anouar Majdoubi, Lalla Zhor Alaoui Omari
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