| Abstract [eng] |
In the recent decade, a lot of emerging countries endeavour to attract foreign direct investment (FDI) due to its direct or indirect impact on promoting and empowering the economic development. Morocco has been putting lots of incentives to be one of the leading countries for inward FDI in the North Africa by adopting new policy which lead to create partnership with different countries around the world in order to increase the local economic resources, enhance the infrastructures, provide more job opportunities, augment the exchange rate, convert debts to investments, and mainly to ensure sustainable economic development. The aim of this study is to inspect the impact of FDI on the economy of Morocco, with a focus on underlining the challenges that affect the inflow of FDI and causality of higher inflow of FDI. The main objectives of this study are to gauge the structure and the performance of FDI in Morocco. Where the methodology used in this study included graphical presentation and analysis which helps to understand the inflow of FDI in the major sector of the economy and in the overall economy, in addition to the regression analysis which gave econometric evidence for the impact of FDI on economic development. The data used in this study highlight the period of 2006-2015 which is provided by Bank of Morocco and World Bank. The calculation for the multiple linear regression method was made with SPSS statistic version 23 to analyse the relation between economic development and FDI, the variables implemented for this assessment were gross domestic product (GDP) growth, FDI, inflation, exchange rate, debt, and labour force. The result shows the F-statistics is 1.253 and R² is 0.61 which mean that the model could be accepted and the variables are reliable for explaining the impact of FDI on the economic development in Morocco. The result was positive but not statically significant, this could be due to some FDI have been targeting sectors which are already strong rather than empowering weak sectors which could led to the economic development of Morocco. It also explains that there is a need for reviewing the policy of investment in the country. The suggested recommendation was, there is a need to attract FDI that create jobs and increase the salaries for the labour force, adopting a policy that creates a friendly atmosphere which attracts foreign investors, but at the same time help local investment to grow by lowering taxes and facilitate the credits from the banks. A total of 12 Figures and 13 Tables were used for the thesis. |
