Mohammed Hennach

Type of the article: Research Article

Abstract
The objective of this study is to assess the potential long-term impact of continued and increasing consumption of renewable energy on Morocco’s economic growth. Employing a Cobb-Douglas production function, the study investigates the influence of renewable energy on GDP over the period from 1990 to 2023. In order to consider a possible non-linear dynamic, the squared term of renewable energy consumption is included among the explanatory variables, and the analysis is conducted using the autoregressive distributed lag (ARDL) bounds testing approach. The findings reveal a non-linear, inverted U-shaped relationship between renewable energy use and economic growth. Specifically, the analysis identifies a critical consumption threshold of 9%, beyond which the effect on growth turns negative. Given that Morocco’s current energy strategy, adopted in 2009, targets a substantial increase in renewable energy use over the long term, the results suggest that unchecked expansion may hinder economic performance. Therefore, optimizing renewable energy use is essential, and a revision of 2009 energy policy appears warranted to ensure it aligns with long-term economic sustainability.

Type of the article: Research Article

Abstract
This paper aims to investigate the short- and long-term relationships between fiscal deficit and economic growth in Morocco over the period 1985–2024. The ARDL bounds test approach is used to determine the existence of a cointegration relationship, while the error correction model (ECM) captures the short-run dynamics. The empirical results indicate that fiscal deficit exerts an immediate and significant negative effect on economic growth, suggesting that deficit financing may generate short-term macroeconomic pressures. However, the lagged effects of the fiscal deficit become positive and significant, reflecting a delayed expansionary impact of fiscal policy. In the long run, fiscal deficit has a negative and significant effect on economic growth, implying that persistent budget imbalances can hinder growth through debt accumulation and crowding-out effects. The bounds test confirms the existence of a stable cointegration relationship between the budget deficit and economic growth in Morocco. Furthermore, the negative and statistically significant error correction term indicates a relatively rapid adjustment towards long-term equilibrium following short-term shocks. These findings highlight the importance of prudent and sustainable fiscal management to support long-term economic growth in Morocco.