Assessing the Impact of Structural Reforms on Potential Output: The Case of Morocco

Author/Editor:

Hippolyte W. Balima ; Olivier Bizimana ; Ananta Dua

Publication Date:

October 27, 2023

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper assesses Morocco’s potential output and the scope for structural reforms to reverse the downward trend in economic performance observed since the Global Financial Crisis. Using multivariate filtering (MVF) techniques, our analysis finds that the downward secular trend in potential growth was primarily driven by the decline in the contribution of labor inputs. We then combine production function and general equilibrium model approaches to provide estimates of the potential macroeconomic impact of Morocco’s structural reform agenda. The results suggest that the planned structural reforms could deliver sizable output gains in the medium to long term with reforms that would reduce the large gender gap in Morocco’s labor market yielding the greatest payoffs.

Series:

Working Paper No. 2023/222

Subject:

Frequency:

regular

English

Publication Date:

October 27, 2023

ISBN/ISSN:

9798400258411/1018-5941

Stock No:

WPIEA2023222

Format:

Paper

Pages:

34

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