n African Finance Journal - Labour productivity, technological gap and spillovers : evidence from Moroccan Manufacturing Industries




The objective of this paper is to investigate empirically whether there is any evidence that Foreign Direct investment (FDI) has had a positive impact on productivity performance in Moroccan Manufacturing industries. To this end a panel data set at sector level for the Moroccan manufacturing industries in the period 1987-1996 was used. Our results suggest that the foreign presence increases the domestic labour productivity. However, this relationship is a complex one and depends on absorptive capacity or technological gap (distance between foreign and indigenous firms in terms of total factor productivity). The technological gap seems to be a condition for spillovers, but only within a certain range. Our results show a significant positive effect of trade openness (exports) on the Moroccan labour productivity.


Article metrics loading...

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error