Fiscal Decentralization and Economic Growth in Morocco: A Panel Cointegration Analysis

This article focuses on the effects of fiscal decentralization on economic growth in Morocco, taking into account three dimensions: expenditure decentralization, revenue decentralization and the composite of these two indices. It uses a co-integration panel approach to separate long run effects fro...

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Bibliographic Details
Main Authors: Meriem Miri, El Hassan Taacha, Mohamed Ayman Benatia
Format: Article
Language:English
Published: EconJournals 2018-02-01
Series:International Journal of Economics and Financial Issues
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/5717
Description
Summary:This article focuses on the effects of fiscal decentralization on economic growth in Morocco, taking into account three dimensions: expenditure decentralization, revenue decentralization and the composite of these two indices. It uses a co-integration panel approach to separate long run effects from short run dynamics; By using and revising the set of data generally used in these empirical analyses. The results show that fiscal decentralization can lead to significant long-term economic growth (particularly significant for revenue decentralization), but in the short-term, this leads to a decrease in economic growth. Indeed, short-term results show that fiscal decentralization generates in the very short term a decrease in economic growth before improving over time until reaching a long-term increase between 2003 and 2014 in Morocco. Keywords: fiscal decentralization, economic growth, Morocco JEL Classifications: C2, H7
ISSN:2146-4138