The Impact of FDI and Technology Transfer on Economic Growth: Theoretical Study and Empirical Validation in the Case of Morocco

Abstract

Foreign direct investment (FDI) has grown significantly in developing countries over recent decades, and governments in these countries now regard FDI as a key component of their development strategy. The potential benefits of FDI include the provision of financial resources, job creation, increased economic growth and spillover effects on local businesses. In addition, the development effectiveness of FDI depends on the ability of host countries to absorb technology and innovation from foreign companies.

Technology transfer (TT) is therefore a major issue in the context of FDI. Political institutions and economic players need to work together to encourage effective and sustainable technology transfer. Technology transfer is therefore an essential process in enabling companies to remain competitive and innovate in a constantly changing economic environment. Technology transfer centers play a crucial role in this process, facilitating the exchange of knowledge and technology between the various players in the innovation ecosystem.

The econometric analysis we conducted covering the period from 2000 to 2021 revealed significant results regarding the impact of two key variables, Foreign Direct Investment (FDI) and Technology Transfer (TT), on economic growth in Morocco. These results underline the importance of these factors for growth, although other variables may also play a role. In order to achieve sustainable growth, Morocco should continue to attract foreign investment while promoting technological development and knowledge transfer.