Fostering Higher Growth and Employment in the Kingdom of Morocco (World Bank Country Study)

Contents......Page 5
Acknowledgments......Page 9
Acronyms and Abbreviations......Page 11
Executive Summary......Page 13
1. Motivation......Page 17
2. Morocco’s Low Growth Rates in Historical Perspective......Page 21
5. Growth of Components of Real Demand......Page 27
4. The Binding Constraints to Growth in Morocco......Page 31
13. Constant Market Share, Morocco and Others 1998–2003......Page 43
16. Comparing Discoveries between Morocco and its Main Competitors......Page 46
20. Nominal and Effective Rates of Protection (percent)......Page 55
How Governance Issues Might Indirectly Relate to Binding Constraints......Page 62
5. How Do Morocco’s Obstacles to the Business Environment Affect Productive Diversification?......Page 65
6. Reducing Anti-Export Bias to Foster Diversification and Export Growth......Page 73
7. Labor Rigidities and Employment Creation......Page 81
8. The Need for a New Growth Strategy......Page 89
9. The Vision of a New Pact for Growth and Employment: Policy Proposals for Productive Diversification......Page 95
References......Page 113
1. Growth Decomposition for the Whole Economy (in percent)......Page 29
2. Morocco and Some Competitors: Selected Indicators on the Corporate Income Tax Regime......Page 48
3. Morocco’s Performance in the Knowledge Economy Index......Page 71
4. Structural Changes in Morocco’s Textile and Clothing Exports, 1995–2004......Page 79
5. Growth Strategies Followed in East Asia and Chile: Were They That Different?......Page 92
6. Toward A New Pact for Growth and Employment in Morocco. Matrix of Priority Policies and Actions......Page 109
2. No Convergence Across the Strait of Gibraltar or with Turkey......Page 22
4. Comparator: The World (Maddison Data)......Page 23
6. National Savings and Investment Rates (in percent of GDP)......Page 28
7. Growth Diagnostic: Decision Tree on the Main Constraints to Growth......Page 34
8. Credit Availability is Relatively High......Page 36
10. Morocco’s Country Risk (Basis Points)......Page 37
11. Secondary School Enrollment and Per Capita Income (2001–WDI, 2005)......Page 38
12. Governance and Per Capita Incomes in MENA......Page 41
14. Percentage Share of Engineering and other High Value-added Manufactured Products in Total Exports......Page 44
15. Sophistication of Exports and Income Per Capita......Page 45
17. Morocco’s Marginal Tax Rates on Individuals: An International Perspective......Page 50
18. Labor Market, Real Exchange Rate, and the External and Internal Balances......Page 52
19. OTRI and GDP per capita in PPP2000 US$—Tariffs and NTBs......Page 54
22. Francophone Call Centers in a Few Countries......Page 57
23. Sectors, Regions, and Types of Enterprises: Highly Diverse Perceptions of Constraints......Page 67
24. What Firms Are Really Out of the Credit Market......Page 68
25. Constraints of Access to Land—International Comparisons from ICAs......Page 69
26. Access to Real Estate, Type of Enterprise, and Region......Page 70
28. Morocco’s Exports versus Spain and France’s Imports, Growth Rate, %, 1962–2004......Page 74
29. Real Effective Exchange Rate in Chile and Morocco......Page 75
30. Unweighted Average Tariffs in Morocco and Chile......Page 76
31. Morocco’s Multiple, Overlapping Trade Agreements......Page 77
32. Impact of the MFA Removal on Moroccan Exports to the EU and US Markets......Page 80
34. Growth in Rural Population and Income Per Capita (in logs)......Page 83
35. Value-added per Worker and Average Wages in Manufacturing (ICA 2004)......Page 85
36. Real Wage Rates for Selected Sectors (in thousands MAD per year)......Page 86
37. MW: Effective and Adjusted to Productivity Gains (Index Base Year: 1984=100)......Page 87
1. The Need for an Update of the National Accounts System......Page 25
2. The Emergence Program......Page 90
3. Binding Constraints to Growth......Page 96
4. How Do Diagnostics on Identified Constraints to Growth Compare to Those Found by the Emergence Program......Page 97
5. Applying Rodrik’s Ten Principles to a Productive Diversification Policy in Morocco......Page 105
6. Recent Employment Measures of the Government......Page 108