Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The impact of the global financial crisis on Moroccan exports: a gravity model approach

The impact of the global financial crisis on Moroccan exports: a gravity model approach The purpose of this paper is to examine the impact of the global financial crisis (GFC) on Morocco’s export performance employing a gravity model framework.Design/methodology/approachThe authors investigate trade flows between Morocco and its 18 major trading partners from 2001 to 2015. The authors employ a trade gravity model using a first-order Taylor approximation of multilateral resistance terms and estimate by OLS and PPML.FindingsMorocco’s export performance was affected by the GFC. The authors find evidence that the fall in aggregate demand from Morocco’s trading partners, particularly in Europe, led to a fall in its exports. The authors also find that Morocco’s exports are positively correlated with the market size of its partner but negatively associated with distance.Originality/valueThis study contributes to the literature in two distinct ways. First, it examines variables affecting export performance in one of the emerging markets in the Middle East and North Africa region. Second, it assesses empirically whether there is a relationship between the GFC and the decline in Moroccan exports. The study also provides a number of important implications for policy makers and academics. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png African Journal of Economic and Management Studies Emerald Publishing

The impact of the global financial crisis on Moroccan exports: a gravity model approach

Download PDF
14 pages

Loading next page...
 
/lp/emerald-publishing/the-impact-of-the-global-financial-crisis-on-moroccan-exports-a-O0oA0PCPjy
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2040-0705
DOI
10.1108/ajems-03-2018-0075
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to examine the impact of the global financial crisis (GFC) on Morocco’s export performance employing a gravity model framework.Design/methodology/approachThe authors investigate trade flows between Morocco and its 18 major trading partners from 2001 to 2015. The authors employ a trade gravity model using a first-order Taylor approximation of multilateral resistance terms and estimate by OLS and PPML.FindingsMorocco’s export performance was affected by the GFC. The authors find evidence that the fall in aggregate demand from Morocco’s trading partners, particularly in Europe, led to a fall in its exports. The authors also find that Morocco’s exports are positively correlated with the market size of its partner but negatively associated with distance.Originality/valueThis study contributes to the literature in two distinct ways. First, it examines variables affecting export performance in one of the emerging markets in the Middle East and North Africa region. Second, it assesses empirically whether there is a relationship between the GFC and the decline in Moroccan exports. The study also provides a number of important implications for policy makers and academics.

Journal

African Journal of Economic and Management Studies – Emerald Publishing

Published: Mar 1, 2019

Keywords: Gravity model; Global financial crisis; Moroccan exports; Multilateral resistance terms; PPML; Taylor approximation

References

  • How does trade evolve in the aftermath of financial crises?
    Abiad, A.; Mishra, P.; Topalova, P.
  • Revisiting the effect of regional integration on African trade: evidence from meta-analysis and gravity model
    Afesorgbor, S.
  • Exports and financial shocks
    Amiti, M.; Weinstein, D.E.
  • A theoretical foundation for the gravity equation
    Anderson, J.E.
  • The gravity model
    Anderson, J.E.
  • Gravity with gravitas: a solution to the border puzzle
    Anderson, J.E.; van Wincoop, E.
  • Specialization: pro- and anti-globalizing, 1990-2002
    Anderson, J.E.; Yotov, Y.V.
  • Dark costs, missing data: shedding some light on services trade
    Anderson, J.E.; Borchert, I.; Mattoo, A.; Yotov, Y.V.
  • Macedonia’s exports toward southeast Europe through the gravity model
    Apostolov, M.; Josheski, D.
  • Bonus vetus OLS: a simple method for approximating international trade-cost effects using the gravity equation
    Baier, S.; Bergstrand, J. H.
  • Determinants of business cycle co-movement: a robust analysis
    Baxter, M.; Kouparitsas, M.
  • Time to ship during financial crises
    Berman, N.; José, D.S.; Philippe, M.; Thierry, M.
  • The relevance of global sector influence in African sector portfolios
    Boamah, N.
  • Firms and the global crisis: French exports in the turmoil
    Bricongne, J.-C.; Fontagné, L.; Gaulier, G.; Taglioni, D.; Vicard, V.
  • How international trade is affected by the financial crisis: the gravity trade equation
    Broll, U.; Jauer, J.
  • Trade intensity and business cycle synchronization: are developing countries any different?
    Calderon, C.; Chong, A.; Stein, E.
  • The gravity equation in international trade: an explanation
    Chaney, T.
  • Controlling for heterogeneity in gravity models of trade and integration
    Cheng, I.-H.; Wall, H.J.
  • Off the cliff and back? credit conditions and international trade during the global financial crisis
    Chor, D.; Manova, K.
  • Trade and the global recession
    Eaton, J.; Kortum, S.; Neiman, B.; Romalis, J.
  • South African exports of metal and articles of base metal: a gravity model approach
    Eita, J.; Jordaan, A.
  • Border effects and the gravity equation: consistent methods for estimation
    Feenstra, R.C.
  • The endogeneity of the optimum currency area criteria, intra-industry trade, and EMU enlargement
    Fidrmuc, J.
  • Institutions, infrastructure, and trade
    Francois, J.; Manchin, M.
  • Regional trading blocs in the world trading system
    Frankel, J.A.
  • The endogeneity of the optimum currency area criteria
    Frankel, J.A.; Rose, A.K.
  • Estimating trade flows: trading partners and trading volumes
    Helpman, E.; Melitz, M.; Rubinstein, Y.
  • Banking crises and exports: lessons from the past
    Iacovone, L.; Zavacka, V.
  • Trade, finance, specialization, and synchronization
    Imbs, J.
  • Global financial stability report: navigating the financial challenges ahead
  • Trade map: trade statistics for international business development
  • Putting the parts together: trade, vertical linkages, and business cycle co-movement
    Julian, D-G.; Levchenko, A.
  • EU-China trade: geography and institutions from 2001 to 2015
    Karkanis, D.
  • How do banking crises affect bilateral exports?
    Kiendrebeogo, Y.
  • The collapse of international trade during the 2008-2009 crisis: in search of the smoking gun
    Levchenko, A.A.; Lewis, L.; Tesar, L.L.
  • Competitive determinants of Moroccan exports: quantity based analysis
    Lotfi, B.; Karim, M.
  • The log of gravity revisited
    Martínez-Zarzoso, I.
  • Does the trade gravity model depend on trading partners? Some evidence from Vietnam and her 54 trading partners
    Narayan, S.; Nguyen, T.
  • The log of gravity
    Santos Silva, J.M.C.; Tenreyro, S.
  • The global financial crisis and its impact on trade: the world and the European emerging economies
    Shelburne, R.
  • How international trade is affected by the financial crisis: the gravity trade equation
    Udo, B.; Julia, J.