Overview

Original Research

FINANCIAL INNOVATIONS AND FINANCING OF THE MOROCCAN ECONOMY

AIT HBIBI AMINA 1, and MANSOURI BRAHIM 2.

Vol 17, No 11 ( 2022 )   |  DOI: 10.5281/zenodo.7388760   |   Author Affiliation: PhD in Economics, Research Laboratory for Energy, Environment and Resources Economics (GREER), Cadi Ayyad University-Marrakech-Morocco 1; Professor of economics, Research Laboratory for Energy, Environment and Resources Economics (GREER) Cadi Ayyad University-Marrakech-Morocco 2.   |   Licensing: CC 4.0   |   Pg no: 1962-1980   |   To cite: AIT HBIBI AMINA, and MANSOURI BRAHIM. (2022). FINANCIAL INNOVATIONS AND FINANCING OF THE MOROCCAN ECONOMY. 17(11), 1962–1980. https://doi.org/10.5281/zenodo.7388760   |   Published on: 30-11-2022

Abstract

While the issue of financial innovation has been addressed through several debates as well as theoretical studies and approaches, its role in the financing of the economies in general and of the Moroccan domestic economy in particular, has received less attention. Thereby, our research work aspires both to grasping linkages between financial innovation and the financing of economies, and to understanding the extent to which such innovation contributes to the economic financing. To do so, we have resolved to a vector-autoregressive (VAR) modeling in the sense of Granger (1987). The results of our empirical investigation have shown that financial innovation contributes positively to the financing of the economy. However, this contribution remains limited in terms of magnitude and disappointed aspirations.

Keywords

Financial innovation, financing of the economy, financial repression, financial liberalization, hybrid instrument, vector autoregressive (VAR) model.