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Imports contents, value added generation and structural change in morocco: input output analysis

Ezzahid, Elhadj and Chatri, Abdellatif (2015): Imports contents, value added generation and structural change in morocco: input output analysis.

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Abstract

Our main goal in this paper is to classify productive sectors according to the combination of two effects. The first effect lies in the change of their external dependency on imported inputs. The second effect is related to the change of their ability to generate value-added by unit of final demand. To perform this ordering of productive sectors, we use an input-output model after domesticating inter-industries tables of flows for the period 1999-2009. The domestication of the available matrix of intermediate consumption is necessary because the statistical authority in Morocco does not distinguish between imported and domestically produced inputs. Two of our results worth to be highlighted. First, the imports elasticity with respect to growth is superior to unity. This means that 1% increase of Gross Domestic Product produces an increase of imports of more than 1%. The second result is that there are no productive sectors belong to the most virtuous classes of sectors characterized by an increase of their ability to generate more value added and to reduce their reliance on imports. The higher imports dependency (leakages) is the consequence of increased openness of the Moroccan economy, but also from lower linkages between domestic productive sectors.

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