Assessment of the synergistic impact of domestic and foreign direct investment on economic growth in Morocco

Abstract: In a global context characterized by increasing globalization, market liberalization, and rising capital flows, this study investigates the impact of the interaction between Foreign Direct Investment (FDI) and domestic investment on Morocco’s economic growth. Grounded in a theoretical framework encompassing various economic approaches—classical, neoclassical, endogenous, and Keynesian—and employing a quantitative methodology with an ARDL model covering the period 1990–2023. The analysis reveals that both FDI inflows and domestic investment exert a positive influence on growth. Their interaction demonstrates a strong complementarity, amplifying their respective beneficial effects. Additionally, public expenditure exhibits a positive long-term impact, albeit less significant in the short term. These findings underscore the importance of enhancing FDI attractiveness, fostering domestic investment, and promoting their synergy through policies focused on innovation, infrastructure development, and strategic management of public expenditures to support sustainable growth. Keywords: FDI, attractiveness, domestic investment, economic growth