The impact of FDI on economic growth and unemployment in Morocco: causality test

Abstract

Nowadays, FDI has become one of the main indicators of a country's economic attractiveness. With globalization having taken over our century, we can consider the world today as interconnected in part thanks to FDI. Morocco is no exception. Moreover, the impact of FDI on economic growth and employment is a subject of theoretical debate in the literature, but the nature and extent of these effects vary from one study to another. The aim of this article is to study the impact of FDI on economic growth and unemployment in Morocco over the period from 1991 to 2019. Methodologically, we use the multiple regression model with the OLS technique. The main results of the study show that foreign direct investment and economic growth have a positive effect on job creation. Conversely, as FDI increases, economic growth decreases