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

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...

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Bibliographic Details
Main Author: Balima, Hippolyte
Other Authors: Bizimana, Olivier, Dua, Ananta
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Assessing the Impact of Structural Reforms on Potential Output: The Case of Morocco  |c Hippolyte Balima, Olivier Bizimana, Ananta Dua 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2023 
300 |a 34 pages 
653 |a Cross-Country Output Convergence 
653 |a Labour; income economics 
653 |a Potential output 
653 |a Aggregate Productivity 
653 |a Fiscal Policy 
653 |a Cost 
653 |a Capital and Total Factor Productivity 
653 |a Production 
653 |a Industrial productivity 
653 |a Aggregate Labor Productivity 
653 |a Intangible Capital 
653 |a Production; Economic theory 
653 |a Labor 
653 |a Economics of specific sectors 
653 |a Macroeconomics: Production 
653 |a Currency crises 
653 |a Forecasting and Other Model Applications 
653 |a Macroeconomics 
653 |a Measurement of Economic Growth 
653 |a Capacity 
653 |a Institutions and Growth 
653 |a Capital 
653 |a Labor Standards: Labor Force Composition 
653 |a Employment 
653 |a Forecasting and Simulation: Models and Applications 
653 |a Structural reforms 
653 |a Economic & financial crises & disasters 
653 |a Investment 
653 |a Economics: General 
653 |a Unemployment 
653 |a Macrostructural analysis 
653 |a Informal sector; Economics 
653 |a Aggregate Human Capital 
653 |a Total factor productivity 
653 |a Labor force participation 
653 |a Institutions and the Macroeconomy 
653 |a Labor market 
653 |a Wages 
653 |a Intergenerational Income Distribution 
653 |a Production growth 
653 |a Production and Operations Management 
700 1 |a Bizimana, Olivier 
700 1 |a Dua, Ananta 
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520 |a 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