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Picking Winners and Losers: An Empirical Analysis of Industrial Policy in Morocco

Harabi, Najib (2007): Picking Winners and Losers: An Empirical Analysis of Industrial Policy in Morocco.

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Abstract

This paper describes the major instruments of industrial policy in Morocco since its independence (1956) and assesses them empirically. Regarding the second objective, several methods for assessing the impact of industrial policy exist in the economic literature. In this paper the question is raised whether government selective policies have contributed to economic growth of private firms in Morocco. To answer this question empirically, the paper analyzes the factors affecting the growth process of Moroccan private firms, including selective government policies. The analysis is based on a field survey of 850 firms carried out under the auspices of the World Bank in 2004. The sample includes firms of different sizes and covers all major manufacturing industries. A major result of this case study is that they are indirect clues of the inefficacy of industrial policies in Morocco, at least measured by their impact on firm growth.

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