Abstract:

This study investigates the implications of foreign trade policies on economic growth and internal income inequality in Morocco. While the country’s integration into the global economy and trade liberalization have been prominent objectives, recent challenges such as the pandemic, inflation, and volatile raw material prices have sparked concerns about their impact on household well-being. Using a Computable General Equilibrium Model (CGEM) based on the Moroccan Social Accounting Matrix (SAM) for 2019, the study finds that full trade liberalization has a negative effect on GDP growth, while anti-liberal trade policies have a positive impact. However, the influence on well-being measures and income inequality is relatively modest and statistically less significant, highlighting the intricate relationship between foreign trade policies and income disparities within a small, open economy like Morocco.

Keywords:

Economic growth, trade policies, income inequality, CGEM.

JEL Classification:

F43; F13; D63; C68.

How to Cite:

Elbejnouni Ismail and Zouiri Lahboub. Simulating the Effects of Foreign Trade Policies on Growth and Income Inequality: CGEM for the Moroccan Economy. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a251/