Investment, globalization, aid, and economic growth: Evidence from Morocco

For the past three decades, globalization in terms of the expansion of both international trade and FDI inflows has proceeded and, in the meantime, the economic growth rates have risen in Morocco. The current paper applies Stock and Watson's small sample cointegration test and the error correction model to reveal the determinants of Morocco's economic growth. The empirical evidence supports the existence of a long-run equilibrium relationship among the variables concerned. Regardless of the measure of international trade, investment and/or aid inflows are revealed to have caused economic growth in Morocco positively.