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Assessing the Impact of Structural Reforms on Potential Output: The Case of Morocco
Author:
Hippolyte W. Balima https://isni.org/isni/0000000404811396 International Monetary Fund

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Olivier Bizimana
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Ananta Dua
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Series:
IMF Working Papers
Volume/Issue:
Volume 2023: Issue 222
Language:
English
Publication Date:
27 Oct 2023
DOI:
https://doi.org/10.5089/9798400258411.001
ISBN:
9798400258411
ISSN:
1018-5941
Pages:
34
Keywords:
Economic growth; structural reforms; potential output; productivity; multivariate filter; dynamic stochastic general equilibrium models; fiscal policy; Morocco; production function approach; Morocco's agenda; reform multiplier; structural reform agenda; case of Morocco; Total factor productivity; Labor force participation; Production growth; Global
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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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund