GREEN FDI VS. TRADITIONAL FDI IN MOROCCO: A COMPARATIVE STUDY ON SUSTAINABILITY OUTCOMES

This paper investigates the relatively dissimilar environmental after-effects that Green Foreign Direct Investment (Green FDI) and Traditional FDI have in Morocco via econometric study and comparative case analyses. Employing data in panels from 2010–2024, we measure the emissions of CO2 as well as water and waste in 14 sectors of the Moroccan economy. We are also making a comparison between the NOOR Ouarzazate Solar Complex (Green FDI) and the Tangier Automotive Hub (Traditional FDI) as the two projects that are at the center of FDI in the Moroccan economy. Fixed effects estimates reveal that a 10% increase in Green FDI reduces sectoral CO₂ intensity by 4.2% (p < 0.01), while the same increase in Traditional FDI raises CO₂ intensity by 2.7% (p < 0.05). The case studies highlight differences in technology spillovers, regulatory compliance, and resource intensity. The study offers policy recommendations for Morocco’s FDI framework, emphasizing differentiated incentives, enhanced monitoring technologies, and governance reforms to align FDI with Sustainable Development Goals (SDGs). Keywords: Green FDI, Pollution Haven Hypothesis, Morocco, sustainability.