The Automotive Industry in Morocco : A Comparative Study with South Africa from 2011 to 2022

Abstract

In this article, the primary objective is to examine the pivotal factors that facilitate the integration of foreign direct investment (FDI) into the Moroccan automotive industry.A comprehensive analysis will be conducted, encompassing the sector's production capacity and the growth dynamics of car exports. A particular emphasis will be placed on trade with the European Union, which stands as Morocco's primary economic partner.

The analysis is conducted using a dataset spanning the period from 2011 to 2022, a decade characterised by substantial transformations within the Moroccan automotive industry, as well as by changes in global industrial and trade policies.The study employs a comparative approach, examining Morocco's trajectory alongside that of South Africa, another African economy with a substantial and competitive automotive industry.

The analysis reveals several pivotal factors that have a substantial impact on the growth of these two sectors, including enhanced infrastructure, tax incentives, the availability of skilled labour and strategic trade agreements. These factors enable an assessment of the role of public policies in attracting FDI and strengthening the competitiveness of automotive exports.

Keywords : Automotive industry - Car production - Car exports - Foreign direct investment (FDI) - Industrial growth - Production capacity - South Africa

JEL Code : L10, L20, L30.

Paper type : Theoretical research