Is there a crowding-out effect in the Moroccan context ? Evidence from structural VAR Analysis

BOUNADER, Lahcen (2016): Is there a crowding-out effect in the Moroccan context ? Evidence from structural VAR Analysis.

Abstract

This paper investigates the crowding out effect hypothesis in Morocco. Accordingly, the interest rate reacts to the change of the level of government spending. The Empirical results obtained from the impulse response analysis of the structural VAR model indicate the absence of such an effect. Spending in infrastructure, in communication and in welfare seem to build the basis of modern economy that will attract private investments, and the result will not be materialized in the immediat short term.

• Item Type: MPRA Paper
• Language: English
• Keywords: SVAR, Fiscal policy, Real interest rate.
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy

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