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

Volume 7, Issue 2
  • ISSN : 1605-9786



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.

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