Spillovers From Europe Into Morocco and Tunisia
IMF Working Papers, October 1, 2010
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Bibliographic details
- Authors: Daniel Florea, Joël Toujas-Bernate, Reinout De Bock
- Published: October 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455209385.001
Overview and methodology
- Paper authors: Daniel Florea, Joël Toujas-Bernate, Reinout De Bock.
- Publication date: October 1, 2010.
- Series: Working Paper No. 2010/238; Issue: 238; Volume: 2010; Pages: 21.
- DOI: https://doi.org/10.5089/9781455209385.001.
- Methodology: Uses structural vector autoregressions to examine economic and financial linkages between Morocco and Tunisia and their European partners.
- Subject areas: Balance of payments, Economic sectors, Exports, Foreign direct investment, Foreign exchange, International trade, Remittances, Tourism.
- Keywords included: Business cycles, EU area, EU import, EU merchandise import, EU partner country, EU share, EU trade flow, Europe, Exports, Foreign direct investment, GDP growth, Morocco, places Morocco, Remittances, Spillovers, Tourism, Trade, Transmission channels, Tunisia, WP.
Key findings
- Growth shocks in European partner countries generate significant responses on growth in Morocco and Tunisia.
- Transmission channels identified:
- For Tunisia:
- Exports are the major transmission channel.
- Tourism is a transmission channel to a much lesser extent.
- For Morocco:
- Exports, remittances, and tourism play relatively equal roles as transmission channels.
- An analysis with sectoral data supports the above results.
Implications and analytical emphasis
- The paper emphasizes the importance of trade, remittances, and tourism linkages with Europe for domestic growth dynamics in Morocco and Tunisia.
- The differential roles of transmission channels across the two countries point to country-specific vulnerabilities and policy priorities tied to external demand from European partners.