Dynamic Externalities, Local Industrial Structure and Economic Development: Panel Data Evidence for Morocco

Abstract

Bun M. J. G. and El Makhloufi A. (2007) Dynamic externalities, local industrial structure and economic development: panel data evidence for Morocco, Regional Studies 41, 823-837. The impact of industrial structure on local economic development is analysed for the case of Morocco. Using annual data for six urban areas and 18 industrial sectors indicators for specialization, diversity and competition of firms within a particular region are constructed for the years 1985-1995. The effects of these and other explanatory variables on local economic activity are estimated using a dynamic panel data model with both individual and time-specific effects. The estimation results suggest significant positive specialization and diversity effects and significant negative competition effects asserting the importance of industrial structure for local economic development. The empirical evidence is robust to the measure of economic activity used in the analysis, i.e. either employment or value added. A similar analysis is conducted restricting the space to the region of Casablanca. Using data on seven districts and 18 sectors for the period 1992-1995 again significant externalities are found within this specific region. Bun M. J. G. et El Makhloufi A. (2007) Les effets externes dynamiques, la structure industrielle locale et le developpement economique: des donnees permanentes pour le Maroc, Regional Studies 41, 823-837. Cet article cherche a analyser l'impact de la structure industrielle sur le developement economique local au Maroc. A partir des donnees annuelles aupres de 6 zones urbaines et 18 secteurs industriels, on construit des indicateurs de specialisation, de diversite et de competition pour les entreprises situees au sein d'une region donnee entre 1985 et 1995. Employant un modele dynamique fonde sur des donnees permanentes et dote des effets individuels et decales dans le temps, on estime l'impact de ces variables-la et des autres variables explicatives sur l'activite economique locale. Les estimations laissent supposer d'importants effets de specialisation et de diversite positifs et d'importants effets de competition negatifs, ce qui affirme le role cle de la structure industrielle pour ce qui est du developpement economique local. Les preuves empiriques confirment la mesure de l'activite economique employee dans cette analyse; a savoir, soit l'emploi, soit la valeur ajoutee. Une analyse similaire est faite en limitant l'espace a la region de Casablanca. A partir des donnees aupres de 7 districts et de 18 secteurs entre 1992 et 1995, il s'avere d'importants effets externes au sein de cette region ainsi delimitee. Effets externes dynamiques Modele dynamique fonde sur des donneespermanentes Structure industrielle locale Developpement economique regional Bun M. J. G. und El Makhloufi A. (2007) Dynamische Externalitaten, lokale Industriestruktur und Wirtschaftsentwicklung: Paneldata-Belege fur Marokko, Regional Studies 41, 823-837. Die Auswirkung der industriellen Struktur auf die lokale Wirtschaftsentwicklung wird fur ...

Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004

“…Agglomeration of small-size firms in itself promoted external economies of scale captured under Porter-type local competition. This result contradicts those of Combes (2000), Bun and Makhloufi (2007) and Catin et al (2007). However, this result is not surprising.…”

“…Examining 18 manufacturing sectors, the obtained results indicate that local employment growth positively depends on MAR and Jacobs externalities. Catin et al (2007) confirm the results found by Bun and Makhloufi (2007), using data on Moroccan provinces over the period of 1985-1999. Cota (2002 attempted to investigate the effect of agglomeration economies on the manufacturing sector of the northern border cities of Mexico.…”

“…In spite of this scarcity, we notice a mixture of studies and research designs. Bun and Makhloufi (2007), for instance, use a panel of 95 geographical areas of six Moroccan regions (Casablanca, Rabat, Tangier, Fes, Meknes and Marrakech) observed from 1985 to 1995 in order to study the effect of agglomeration economies on local economic growth. Examining 18 manufacturing sectors, the obtained results indicate that local employment growth positively depends on MAR and Jacobs externalities.…”

Spatial variations of Greek manufacturing employment growth: The effects of specialization and international trade

“…Recent non‐European evidence (Bun and El Makhloufi 2007) find positive effects of both specialization and diversity of local industrial structure on local industrial development using data for urban areas in Morocco for the period 1985–1995.…”

Decomposing productivity patterns in a conditional convergence framework

“…There is a growing number of empirical studies (for a brief survey see Bun and El Makhloufi 2007), which analyzes the relationship between knowledge externalities and economic development. The majority of these studies measures economic activity by employment and the sectoral perspective is introduced to take account of sector specific characteristics, which affect local historical industrial conditions.…”