Human Capital Investment as a Strategic Lever for Expanding Domestic Demand and Promoting High-Quality Economic Development in Morocco

Abstract

In a context marked by the need to strengthen the internal drivers of economic growth in Morocco, the expansion of domestic demand has emerged as a strategic lever for sustainable and inclusive development. However, existing literature primarily examines investment in human capital through the lenses of productivity enhancement and economic growth, while its role in stimulating domestic demand remains insufficiently explored. This article seeks to fill this gap by proposing an integrative analytical framework linking human capital investment, domestic demand expansion, and high-quality economic development. The study is based on a comparative conceptual analysis supported by a narrative literature review. The findings indicate that investment in human capital operates through four complementary dimensions—microeconomic, mesoeconomic, macroeconomic, and institutional—simultaneously fostering income growth, strengthening consumption capacity, promoting innovation, improving investment efficiency, and supporting the structural transformation of the economy. In the Moroccan context, where household final consumption expenditure accounted for approximately 61.3% of GDP in 2024, investment in education, employment, health, and social protection appears to be a key lever for sustaining domestic demand and enhancing economic resilience. The study therefore enriches the theoretical debate on the relationships between human capital, endogenous growth, and Morocco’s new development model.

Classification JEL : J24; E22; O15.

Paper type: Theoretical Research.