The business environment and Moroccan firm productivity |
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| Authors: | Patricia Augier Marion Dovis Michael Gasiorek |
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| Institution: | 1. DEFI (Development and International Finance), Aix‐Marseille University and FEMISE (Euro‐Mediterranean Forum of Economic Institutes), France. E‐mail: patricia.augier@univ‐amu.fr;2. DEFI (Development and International Finance) and Aix‐Marseille University, France. E‐mail: marion.dovis@univ‐amu.fr;3. CARIS (Centre for the Analysis of Regional Integration at Sussex), Sussex University, Brighton, UK. E‐mail: m.gasiorek@sussex.ac.uk |
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| Abstract: | The paper focuses on the role of the business environment in understanding differences in the total factor productivity of Moroccan firms. The business environment is captured by measures which include the investment climate in which firms operate, i.e. access to credit, regulatory and institutional environment and infrastructure. The evidence on the relationship between credit and productivity is strongly indicative of credit resources misallocation in Morocco. We also find that, heavier bureaucracy and differences in regulations appear to have a negative effect on firm productivity. This last result is particularly relevant for small firms, and/or those that do not export and/or those with no access to foreign capital. |
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| Keywords: | D2 O1 O55 Total factor productivity business environment climate investment firm heterogeneity Morocco MENA |
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