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

Authors

  • Anouar MAJDOUBI Faculty of Economics and Management, Ibn Tofail University of Kenitra, Morocco
  • Lalla Zhor ALAOUI OMARI Faculty of Economics and Management, Ibn Tofail University of Kenitra, Morocco

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.

JEL Classification : E12, F14,F32, F43,

Paper type: Empirical research

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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. Retrieved from https://ijafame.org/index.php/ijafame/article/view/47

Issue

Vol. 1 No. 3 (2020)

Section

Articles

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