The role of the financial sector in the Moroccan economy: lessons learned from input-output analysis

  • Tarik Quamar Hassan II University of Casablanca, Morocco
  • Youssef Bouazizi Hassan II University of Casablanca, Morocco
Keywords: Financial services, input-output analysis, sectoral linkages, hypothetical extraction method


Certainly, much academic work has been interested in understanding the link between finance and the real economy of developed countries. However, few studies have focused on examining these interactions in developing economies like the Moroccan economy, which is already undergoing profound socioeconomic changes. Indeed, it is obvious to believe that the importance of the financial sector is by no means limited to the simple quantification of its share of production in an economy, but necessarily extends to the exchange relations it maintains with other sectors activity. It is therefore legitimate to question the real impact of the Moroccan financial sector and its ability to exert an influence on the entire national production system.

The main objective of this article is to examine the ability of the Moroccan financial sector to disseminate spillover effects through purchases and sales (Backward and Forward linkages) on the real economy. To achieve this, we will use input-output analysis which exploits the flow of sales and purchases of goods and services between the different branches of activity contained in the Input-Output Table of the High Commission for Planning. This analysis will make it possible to assess the intensity of the links between the financial sector and the other sectors of the productive system of the Moroccan economy during the period 2007-2018.

For this purpose, two methods of measurement are deployed to appreciate this force of intersection relation, in fact, Normalized Backward and Forward Linkages and Hypothetical Extraction Method “HEM”. The results obtained show that the domino effects exerted by the financial sector on the remainder of the economy are very important and that they strongly contribute to the growth of the productivity in the other sectors, and this, with a downstream more marked influence than upstream. The thing which attests that the service sector financial is able to contribute favorably to the acceleration of the transformation structural of the Moroccan economy.


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How to Cite
Quamar, T., & Bouazizi, Y. (2021). The role of the financial sector in the Moroccan economy: lessons learned from input-output analysis. International Journal of Accounting, Finance, Auditing, Management and Economics, 2(4), 19-35.