Does Trade Liberalization Reduce Poverty in Morocco? Regional Evidence
Morocco - 23 October 2017
Trade topics: Trade Policy
The paper analyzes the structure of poverty and trade openness in Morocco, and how trade liberalization affects poverty. We present regional evidence in the last fifteen years. We illustrate significant regional differences in term of poverty, vulnerability, inequality and trade openness. We discuss the driving factors of these regional discrepancies. Our approach is based on estimation on a panel model, including the 14 regions. Our results show that extreme poverty is almost eradicated in Morocco, except for some areas. On the other hand, vulnerability remains high with disparities between regions. The Expenditure negatively affects poverty, and trade openness is positively correlated with Expenditure. Which may confirm the view that trade has a positive effect on growth, and growth reduces poverty by improving income. Our analysis provides policy recommendations for fighting effectively poverty and reducing regional disparities.