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The impact of the global financial crisis on Moroccan exports: a gravity model approach

Abdelmounaim Lahrech (Faculty of Business and Law, British University in Dubai, Dubai, United Arab Emirates)
Anass Faribi (School of Business Administration, Al Akhawayn University in Ifrane, Ifrane, Morocco)
Husam-Aldin N. Al-Malkawi (Faculty of Business and Law, British University in Dubai, Dubai, United Arab Emirates)
Kevin Sylwester (Department of Economics, Southern Illinois University, Carbondale, Illinois, USA)

African Journal of Economic and Management Studies

ISSN: 2040-0705

Article publication date: 29 November 2018

Issue publication date: 1 March 2019

197

Abstract

Purpose

The purpose of this paper is to examine the impact of the global financial crisis (GFC) on Morocco’s export performance employing a gravity model framework.

Design/methodology/approach

The authors investigate trade flows between Morocco and its 18 major trading partners from 2001 to 2015. The authors employ a trade gravity model using a first-order Taylor approximation of multilateral resistance terms and estimate by OLS and PPML.

Findings

Morocco’s export performance was affected by the GFC. The authors find evidence that the fall in aggregate demand from Morocco’s trading partners, particularly in Europe, led to a fall in its exports. The authors also find that Morocco’s exports are positively correlated with the market size of its partner but negatively associated with distance.

Originality/value

This study contributes to the literature in two distinct ways. First, it examines variables affecting export performance in one of the emerging markets in the Middle East and North Africa region. Second, it assesses empirically whether there is a relationship between the GFC and the decline in Moroccan exports. The study also provides a number of important implications for policy makers and academics.

Keywords

Citation

Lahrech, A., Faribi, A., Al-Malkawi, H.-A.N. and Sylwester, K. (2019), "The impact of the global financial crisis on Moroccan exports: a gravity model approach", African Journal of Economic and Management Studies, Vol. 10 No. 1, pp. 102-115. https://doi.org/10.1108/AJEMS-03-2018-0075

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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