Public finance governance and economic performance in Morocco

Abstract

Developments in the global economy have shown just how important it is for an economy to promote efficient and parsimonious management of public spending. In particular, the scarcity of resources in developing countries should lead the governments concerned to pay greater attention to the quality of public spending. 

This article assesses the influence of fiscal policy on economic activity in Morocco, while also considering the role of governance in the quest for efficiency. Empirical analysis is based on a standard Solow endogenous growth model (World Bank, [2002]), linking economic growth to fiscal variables (VECM).