Research studies

Trade’s Impact on SMEs in Morocco: Empirical Study

المركز الديمقراطى العربىمنذ أسبوعين

204 22 دقائق

Prepared by the researche

PhD Student Manal EL IDRISSI-RAJI, Mohammed V University, Morocco
PhD Abdallah ECHAOUI Mohammed V University of Rabat

Democratic Arabic Center

Journal of Political Science and Law : forty-first Issue – September 2024

A Periodical International Journal published by the “Democratic Arab Center” Germany – Berlin

Nationales ISSN-Zentrum für Deutschland

ISSN 2566-8056

Journal of Political Science and Law

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Abstract

The Moroccan economy’s experience with trade liberalisation has been extensively studied, yet the specific impact on small-scale enterprises (SMEs) remains underexplored. This paper addresses this gap by examining trade liberalisation’s effects on Moroccan SMEs from 2012 to 2019. Utilising secondary data from UNCTAD, Bank Al-Maghrib, The Moroccan Office of Industrial and Commercial Property, and the High Commission for Planning (HCP), this study employed ordinary least squares (OLS) analysis. Results indicate minimal positive influence of trade openness on Moroccan SMEs, with negligible impact from Foreign Direct Investment (FDI), access to finance, and exchange rates. In contrast, research and development (R&D) demonstrate substantial influence, suggesting its vital role. The findings underscore the limited benefits of trade openness and insufficient financial backing for SMEs in Morocco, urging the necessity for improved support systems to integrate them effectively into global value chains.

1 Introduction

Small businesses constitute the core of the nation’s economy, forming the largest segment in most economies and representing a significant avenue for employment generation (M. Grimm and A. L. Paffhausen, 2014). Small and Medium Enterprises (SMEs) are classified based on various criteria like revenue, workforce size, profitability, invested capital, market participation, asset valuation, and comparative scale within their respective sectors. These enterprises play a pivotal role in the economies of both developed and developing nations. M.M. Islam (2020) highlights that fostering SME growth is instrumental in achieving broader economic and socio-economic goals, aimed at alleviating poverty.

While trade liberalisation offers SMEs opportunities for market expansion through exports, their contribution to overall exports remains relatively limited. This restrained participation is partly due to their lower presence in the mining and manufacturing sectors, where economies of scale hold significant sway. Furthermore, SMEs exporting industrial goods lag notably behind larger firms in the same sector, as per findings by The Organisation for Economic Co-operation and Development (OECD) in 2018.

Studies by Melitz (2003) and Bernard et al. (2007) indicate that only the most efficient companies typically venture into global markets due to substantial entry costs. The effects of trade liberalisation policies on SME employment can be contentious. Matsongoni, H., & Mutambara, E. (2021) observe that reforms in these policies led to the downfall of numerous SMEs, primarily due to challenges in competing with foreign enterprises.

Despite extensive scrutiny of the Moroccan economy’s response to international trade and investment policy reforms, their impact on the growth of Moroccan SMEs has been underexplored in both local SME literature and broader discussions. Hence, this study aims to fill this gap by examining how international trade and investment policy reforms influence the growth trajectory of Moroccan SMEs.

In seeking to highlight the benefits that SMEs have gained or may potentially gain from the liberalisation of international trade and investment in Morocco, this study raises three main questions:

What impact have international trade and investment policy reforms had on domestic SMEs?
Has the export growth rate of small and medium-sized enterprises increased following the implementation of reforms and opening up?
Does investment liberalisation foster increased subcontracting between local SMEs and FDI?

2 SME Development in Morocco

Since gaining independence, the Kingdom of Morocco has chosen political pluralism and economic liberalism, enshrining property rights and corporate freedom as fundamental rights protected by the Constitution. The Moroccan economy is recognised for its openness to global engagement. Beginning in the early 1980s, Morocco has actively pursued an economic and financial policy fostering greater openness, intending to reinforce the liberalisation of international trade. This strategy aimed to deepen Morocco’s integration into the global economy and fortify the multilateral trading system. In addition, Morocco is committed to simplifying foreign trade procedures, removing protective tariffs, eliminating non-tariff trade barriers, improving the business and investment environment, expanding and diversifying economic and trade ties, and ultimately consolidating its contribution to the multilateral trading system. This inclination towards openness is evidenced by several free trade agreements established with significant economic allies, particularly the United States, the European Union, as well as various Arab and African nations. In addition, some legal texts have also been developed or revised with these reforms, such as the Investment Charter, the Commercial Code, the Law on the Establishment of Commercial Courts, the Customs Code, the Free Price and Competition Law, the National Treaty Regulations, Industrial and Commercial Property Protection Act, etc. The Kingdom has introduced several sectors aimed at developing industrial production, increasing production in key revenue sectors, enhancing Morocco’s regional and global competitiveness, and attracting foreign investment (Embassy of Morocco in South Africa).

The Moroccan government has implemented several development policies through public investment and activities of state-owned enterprises, constituting a substantial segment of the nation’s GDP. Encouraging foreign direct investment has been at the heart of Morocco’s national development policy in recent years, creating an “industrial ecosystem” that gives foreign companies easy access to economic and human resources. Although these ecosystems have been successful in attracting foreign investment, they have created a dichotomy in the Moroccan economy, with the successful creation of foreign companies but limited impact on local businesses. A joint African Development Bank, EU Investment Bank, and EU Bank report (2021) argues that despite strong and proactive government policies and one of the most diverse and business-friendly economies in the region, Morocco’s private sector is still grappling with creating jobs in the region’s formal sector and creating value for SMEs. Enhanced economic development in Morocco is presenting significant opportunities for the growth of SMEs throughout the region. The government’s initiatives to modernise transportation and logistics infrastructure have not only facilitated subcontracting for small enterprises in substantial projects but have also enhanced transportation and communication networks, facilitating easier access to target markets. Morocco’s expanding network of trade agreements and international trade relations is aiding local businesses in venturing into new markets. Furthermore, foreign direct investment (FDI) surged by 31.3 per cent to MDH 34.2 billion ($3.6 billion) in 2018, injecting fresh capital into the economy, as reported by the Office de Change. While a major portion of FDI flowed into financial services and insurance, other sectors closely associated with SME networks also reaped benefits. Notably, manufacturing constituted 14.3% of Morocco’s total FDI in 2018, propelling advancements in the local supply chain.

Authorities revised competition rules after widespread opposition in 2018 to pricing practices such as fuel distribution and bottled water in some key industries affecting the economy. With new leadership in place, the Competition Commission underwent restructuring in late 2018, equipped with a more robust mandate. The revamped commission aims to oversee and regulate anti-competitive practices. Importantly, it is anticipated to significantly reduce entry barriers for small businesses and aspiring entrepreneurs in the country. In addition, targeted grants and financing programmes are increasingly supporting entrepreneurship. In October 2017, the CCG inaugurated the Innovation Investment Fund, with the objective of assisting pioneering start-ups within the nation. By March 2019, the fund had disbursed over MDH 12.3 million ($1.3 million) to around 62 start-ups. Similar initiatives aim to gradually enhance the innovation environment and create new business.

The reorganization of the Moroccan Regional Investment Centre (RIC) network is geared towards bolstering local enterprises from their inception. Established in 2002, RICs were set up across Morocco with the aim of supporting the establishment of homegrown businesses, fostering both domestic and international investment, and aiding entrepreneurs in navigating the regulatory procedures for new ventures. These centres played a pivotal role in attracting and broadening regional investment, shifting focus from traditional economic hubs like Casablanca and Rabat to less developed regions within the kingdom. Aside from creating employment opportunities, enhancing the business landscape for SMEs promises extensive and enduring benefits. It is poised to significantly impact the country’s taxation dynamics by incentivising a larger number of companies to operate within the formal sector. As highlighted in insights from Hamoumi (Oxford Business Group, 2022), a Certified Corporate Board Director IMA, a significant proportion of Morocco’s small businesses operate in both formal and informal spheres. This dual operation poses a challenge for the government striving to expand the tax base. Hamoumi stresses the private sector’s inclination towards a more conducive business environment, citing that stringent regulations and taxation hinder firms from entering and remaining within the formal domain. Enhancing conditions for SMEs will offer numerous small-scale operators in the nation, often family-run businesses, avenues for expansion and progression. This, in turn, will assist the government in addressing the persistent issue of high unemployment rates in the country. Moreover, as entry barriers for entrepreneurs and start-ups diminish, a surge in innovative concepts across various sectors of the economy is anticipated.

3 Literature Review

Understanding the intricate relationship between trade liberalisation and SME performance remains a subject of extensive exploration and contention within economic discourse. This investigation delves into this complex correlation by amalgamating theoretical underpinnings and empirical evidence spanning diverse contexts.

Theoretical Foundations

Since the mid-1990s, numerous studies have evaluated the effects of trade liberalisation on various aspects such as economic growth, employment, poverty, income distribution, and the survival rates of local enterprises. However, the genuine influence of trade liberalisation on the global economy remains a topic of extensive discussion and disagreement. Theoretically, the broader advantages associated with international trade reform encompass beneficial growth externalities (such as knowledge transfer), enhanced domestic competition, improved allocation of resources, inputs, and intermediate goods, economies of scale and scope, as well as access to advanced and innovative technologies (Falvey & Kim, 1992).

bdulaziz Albaz, et al. (2020), highlight two key reasons why SMEs contribute to a country’s growth. Firstly, these smaller enterprises can swiftly and securely integrate best practices and technologies, bridging a significant adoption gap. Similar to how emerging markets can accelerate growth by embracing established technologies, SMEs can outpace larger companies by adopting tried-and-tested technologies and practices. Secondly, startups, a vital subset of SMEs, serve as a pivotal source of innovation. Unrestrained by antiquated systems and strategies, new entrants often possess the capacity to reimagine established practices and challenge the conventional boundaries within industries.

Raihan (2008) contends that international trade policy reforms induce shifts in the production and consumption of goods and services via alterations in prices, producing substitution effects. These shifts notably influence the volume and types of imports and exports. The price shifts stemming from trade liberalisation foster a more effective redistribution of resources. Furthermore, the opening up of international trade not only enlarges markets but also enhances the dissemination of knowledge, thereby broadening economic prospects.

Theoretical insights from Tulus Tambunan (2008) illustrate the multifaceted impacts of international trade liberalisation on local firms, emphasising both positive and negative ramifications. These reforms could fundamentally alter the landscape for individual firms in four significant ways.

Firstly, heightened competition is a crucial outcome foreseen in this scenario. Lower import tariffs and the elimination of non-tariff barriers amplify foreign competition within domestic markets. This intensified competitive environment incentivises local firms, particularly inefficient ones, to bolster productivity by streamlining operations, exploiting economies of scale, scope, and adopting cutting-edge technologies. The premise aligns with the prevailing theory indicating that firm size positively correlates with enhanced export performance.

Secondly, the prospects of reducing production costs through the utilisation of cheaper imported inputs loom large. Failure to leverage these advantages might exert substantial pressure on local firms, potentially leading to closures. Increased exposure to international trade propels larger firms as they adeptly embrace efficient technologies and capitalise on economies of scale, fortifying their market positions.

Thirdly, expanded export opportunities emerge as a significant avenue for local firms. Reduced input costs empower them to vie more competently in both domestic and international markets, heightening competition vis-à-vis imported products.

Lasly, a significant outcome of trade liberalisation could be a potential decline in the accessibility of domestic inputs. When export limitations are lifted on raw materials in their unprocessed state, it may result in increased exports, inadvertently impacting local industries that depend on these resources.

In the context of SMEs, the impact of international trade liberalisation presents a dual narrative. While inefficient or uncompetitive SMEs may suffer from increased foreign competition, their more efficient counterparts stand to benefit. The anticipated efficiency gains could potentially augment the average size of SMEs and, conceivably, curtail average costs. However, the empirical evidence presents a surprising dichotomy.

The pioneering research conducted by Tybout (2000) delves into the micro-dynamic impacts of trade liberalisation on manufacturing firms in developing nations, presenting a differing perspective. It consistently portrays a scenario where augmented import penetration and reduced protection aren’t aligned with increased plant sizes. This incongruence challenges the conventional belief that liberalisation invariably leads to immediate efficiency gains. Instead, it suggests that, in the short term, trade liberalisation might counteract the expected economies of scale for SMEs, or the purported efficiency gains might be negligible. Thus, this study’s pivotal revelation lies in the counterintuitive nature of trade liberalisation’s impact on SMEs, highlighting the complexity and nuanced outcomes that diverge from conventional theoretical expectations.

Empirical Insights

Valodia and Velia (2004) investigate the interconnection between the broad-scale foreign trade liberalisation in South African manufacturing and its impacts on individual firms at a micro-level. Their findings reveal a robust correlation between company size and engagement in international trade. Notably, smaller enterprises largely focus on the domestic market, whereas larger corporations dominate the pool of exporters, with nearly half of these exporters being entities with over 200 employees. The research indicates that larger firms demonstrate more success in integrating their manufacturing operations into global production networks. These conclusions align with the assertions of Melitz (2003) and Bernard et al. (2007), suggesting that typically, only the most productive firms venture into international markets due to the high entry costs involved.

Tewari and Goebel’s (2002) examination of SME competitiveness in Tamil Nadu unearthed two intriguing findings. Initially, they observed that SMEs excel in certain domains, much like specific industries outshine others. Secondly, SMEs situated within the lower echelons of large urban areas seem most susceptible to competition from low-cost imports. Conversely, SMEs operating in analogous sectors within rural or small-town settings don’t confront the same competitive pressures. Wang and Yao’s (2002) investigation into China’s trade liberalisation effects reveals a shift towards a more open trade system in the late 1970s, fostering a strengthened SME landscape. Notably, SMEs not only experience rapid growth but also contribute significantly to the broader Chinese economy.

However, a separate investigation conducted by Steel and Webster (1991), utilizing firm-level data from Ghana, highlights that trade liberalisation adversely affects SME profits. This decline is attributed to escalating input expenses, subdued domestic demand, and heightened competition from foreign enterprises. Similarly, Navaretti’s study (2002), analysing firm-level data from Chad and Gabon spanning 1993-96, concludes that the trade reform process, combined with currency devaluation, fails to spur growth for local SMEs. Instead, many of these businesses grapple with soaring input expenditures. Conversely, examining Latin American countries, the impact of international trade liberalisation on informal sector SMEs remains ambiguous. A study in Colombia by Goldberg and Pavenik (2003) suggests that free trade policies aid in bolstering SMEs’ ability to compete against imported goods and services.

A study conducted by Obokoh (2008) sheds light on the ramifications of trade and economic liberalisation on SMEs’ performance. The study aimed to assess the correlation between the adoption of trade and economic liberalisation strategies and the performance of Nigerian manufacturing SMEs. The outcomes suggest that implementing these policies adversely impacted the performance of Nigerian manufacturing SMEs. The withdrawal of oil subsidies and reductions in government spending resulted in escalated commodity prices. Consequently, as real wages declined, overall demand reduced, leading to job losses and continuous devaluation of the Nigerian currency, the naira. The income distribution effect stemming from the market economy stabilisation policy failed to acknowledge improvements in social welfare. Consequently, the attempt to translate elevated input costs into price hikes contributed to inflation, diminishing consumers’ purchasing power. These combined factors significantly hampered SMEs’ performance.

Theoretical and Empirical Framework and Hypotheses

Dependency theory emerged in the late 1950s, spearheaded by Raul Prebisch, who led the United Nations Economic Commission for Latin America. Prebisch and his team of 11 researchers raised concerns about the disconnect between economic growth in developed industrial nations and the growth trajectory in poorer countries (Agbu, 2006). Their findings indicated that economic activity in wealthier nations tends to trigger severe economic challenges in less affluent ones. This outcome contradicts neoclassical theory, which assumes that economic growth benefits all parties, even if these benefits are not distributed equally (Pareto optimal). Prebisch initially attributed this phenomenon to a straightforward cause: poorer countries export primary raw materials to wealthier nations, which then manufacture finished products using these raw materials and sell them back to the less affluent nations. The cost of producing usable products always exceeds the value of the primary materials used in their creation. Consequently, less affluent nations never generate enough revenue from exports to cover the cost of imports (Yusuf, 1994).

The bulk of academic research underscores the hurdles faced by SMEs, including challenges like the high expenses associated with microfinance, steep interest rates, and banks’ risk-averse attitude towards lending to small-scale borrowers. This study aims to precisely evaluate Morocco’s trade liberalisation impact on SME performance, employing a time series model spanning from 2012 to 2019. It seeks to empirically investigate how trade liberalisation influences Moroccan SMEs, with a particular emphasis on trade openness, which plays a pivotal role in enhancing service standards within the SME sector. In pursuing the objectives of this study, attention should be paid to trade openness, SME creations, foreign direct investment, exchange rate, access to finance and research & development. On this basis, the following null hypothesis is proposed:

H01: Trade openness exerts negligible influence on SME growth in Morocco.
H02: FDI insignificantly impacts SME performance.
H03: Exchange rate fluctuations do not significantly affect SME operations.
H04: Access to finance lacks a significant impact on SME functioning.
H05: Research and development minimally influence SME performance.
H06: Overall, trade liberalisation has an insignificant effect on SME growth in Morocco.

4 Methodology

To complement the research work, this study adopted a longitudinal research method. This research design outlines the evolution of variables over time, aiding in discerning both the direction and intensity of causal connections.

This study makes use of secondary data. The Moroccan Institute of Industrial and Commercial Property, Al-Maghrib Bank, UNCTAD, and HCP were used to compile the statistics. The data collected in this study were analysed using the OLS technique to assess the collective impact of independent variables on dependent variables. EViews is used to check the collected data. The study centres on exploring the correlation between SME growth (y) as the dependent variable and trade openness (TO), foreign direct investment (FDI), exchange rate (EXC), access to finance (AF), and research and development (RD) as independent variables. It establishes this relationship through a multiple regression model, expressed mathematically as:

y = α0 + α1 EXC + α2 FDI + α3 TO + α4 AF + α5 RD + Ut

This equation signifies the association between the variables, where α0 represents the constant intercept, α1–α5 are coefficients for the associated variables, and Ut is the random error term.

The log-linearized form of the equation further examines the deterrent effect:

Log(y) = α0 + α1 log(TO) + α2 log(FDI) + α3 log(EXC) + α4 log(AF) + α5 log(RD) + Ut

The ‘a priori’ expectation anticipates positive relationships (α1–α4 > 0) between each exogenous variable and the endogenous variable. This indicates that all exogenous variables are expected to positively influence the endogenous variable.

The study employs these econometric equations to investigate the influence of trade openness, foreign direct investment, exchange rates, access to finance, and research and development on SME growth.

5 Results

Hypothesis testing:

H01: Trade openness has no overall significant effect on SMEs’ growth in Morocco

The impact of trade openness on SME growth was examined through ordinary least squares analysis. Figure.1 illustrates that the analysis explains 75.2% of the total variance in the variables, with a significant F-value of 18.29047 at p<0.05. However, the coefficient for trade openness is notably low; a mere 1% increase in trade openness corresponds to a mere 0.01% rise in SME growth. This suggests an insignificant influence of trade openness on SMEs’ growth in Morocco, indicating a minimal effect on these enterprises. Thus, the null hypothesis—asserting that trade openness lacks a significant impact on SME growth in Morocco—should be accepted while rejecting the alternative hypothesis. Additionally, a Durbin-Watson value of 2.051440 implies the absence of data autocorrelation, further validating the results obtained.

H02: FDI has no significant effect on SMEs’ growth in Morocco

Figure 2 depicts the specific impact of Foreign Direct Investment (FDI) on SME growth, assessed using ordinary least squares. The analysis clarifies that the variables’ overall variance, as indicated by the R Square, stands at 48%. However, the obtained F-value of 5.619903 at p>0.05 signifies a low level of significance. Consequently, it can be inferred that FDI does not yield a notable impact on SME growth in Morocco; rather, it exhibits a minimal and negative influence. Thus, accepting the null hypothesis—asserting the lack of significant FDI impact on SME growth—while rejecting the alternate hypothesis is warranted based on these findings.

H03: Exchange rate has no significant effect on SMEs’ performance

The analysis, depicted in Figure 3, scrutinised the specific impact of the exchange rate on SME growth using ordinary least squares. The model’s overall explanation of variable variance, represented by R-Square at 28.7%, alongside an F-value of 2.415209 at p>0.05, implies an absence of significance. Consequently, it can be deduced that the exchange rate does not exert a notable impact on SME growth in Morocco. Thus, confirming the null hypothesis—asserting the exchange rate’s lack of substantial influence on SME growth—and rejecting the alternative hypothesis is warranted based on this outcome.

H04: Access to finance has no significant effect on SMEs’ performance

The examination of access to finance’s individual impact on SME growth was conducted using ordinary least square analysis, depicted in Figure 4. The overall model, as indicated by the R-Square at 0.014% and an F-value of 0.090104 at p>0.05, reveals a lack of significance. Consequently, the null hypothesis, positing that access to finance does not notably influence SME growth in Morocco, should be upheld, warranting the rejection of the alternative hypothesis.

H05: Research and development have no significant effect on SMEs’ performance

In Figure 5, the analysis examined the individual impact of research and development on SME growth using ordinary least squares. The R-Square revealed that 50% of the variable variance was explained. The F-value stood at 6.013188, significant at p<0.05, indicating its relevance. The coefficient, representing research and development at 48.17%, implies that a 1% increase in this aspect leads to a substantial 48% boost in SME growth. This infers a significant and positive influence of research and development on SME growth in Morocco. Thus, rejecting the null hypothesis, which states no significant impact, and accepting the alternative hypothesis is warranted. However, the Durbin-Watson value at 1.197968 indicates the presence of positive data autocorrelation, necessitating model adjustments.

H06: Trade liberalization has no overall significant effect on SMEs’ growth in Morocco.

In Figure 6, the multiple linear regression showcases the impacts of all variables on SME growth in Morocco through ordinary least squares. The overall analysis explained 97% of the variance in the variables, as indicated by the R-squared value. However, with F = 13.27959 and p > .005, signifying insignificance, it’s evident that trade liberalisation lacks a notable impact on SME growth in Morocco. Thus, accepting the null hypothesis, which suggests that trade liberalisation does not significantly affect SMEs’ growth overall, is reasonable.

6 Conclusion and Recommendations

Trade openness was shown to have a very low effect on SMEs, meaning that trade liberalisation didn’t serve these businesses. We align with Tybout (2000) in his study concerning the micro-dynamic impacts of global trade liberalisation on manufacturing firms in developing nations. In the context of Morocco, trade liberalisation counteracts economies of scale for SMEs in the short term, or if any efficiency gains exist, they appear to be minimal. This can also be explained by the increased competition which prevents SMEs from taking in the advantages of trade openness. This means that in order to let SMEs gain from the reforms, the trade liberalisation needs to be accompanied by several reforms and adjustments that would protect the SMEs and help empower them and encourage the exportation of their goods and services.

As mentioned above, Morocco has put the encouragement of foreign direct investment at the heart of its national development policy in recent years, creating an “industrial ecosystem” that gives foreign companies easy access to economic and human resources. However, the results shown above don’t reflect the efforts of the kingdom, and this is mainly due to the fact that these ecosystems have created a dichotomy in the Moroccan economy, with the successful creation of foreign companies but a limited impact on local businesses. Moreover, most FDI goes into financial services and insurance which is dominated by bigger firms.

An interesting finding is the non-existent effect of the exchange rate on SMEs. It is widely known that exchange rates influence businesses in a couple of ways: either by altering the cost of supplies that are bought from a foreign country or through the changes in the attractiveness and perception of their products to overseas customers. In our case, none of the above happened, meaning that SMEs aren’t implicated in international trade.

Access to Finance was shown to not affect SMEs, although the country has witnessed several incentives from the government as well as the private sector to encourage small-scale businesses in the form of financial support such as the Forsa Program that offers 10 million MDH non-profit loan, refundable after two years. These incentives are present in many sectors such as the agricultural one, Dar Al Moukawil, etc., however, we will need more time to assess their effects on SMEs in the future.

Finally, as shown in the results, only Research and Development has a significant positive effect on SMEs. Research and Development is a pertinent component in the success of businesses and economies in general. It optimises businesses’ existing processes, where costs can be reduced, and efficiency augmented, all thanks to the powerful knowledge and insights that Research and Development provides.

The Dependency Theory states that the value added is the only thing that keeps poor countries poor, as long as they import goods that have more value-added than the goods that they export, they will never break the wheel, however, in our case, and due to the limited data on Moroccan SMEs, it can be tricky to adopt the Dependency Theory as the only reasoning that justifies the results of the study. Many factors are implicated in the unfortunate situation of SMEs, above all is Access to Finance.

The government must take into account the SMEs’ needs and characteristics when making new trade agreements and trade liberalisation reforms. The formulation of policies should promote SMEs’ exportations through non-tariff measures as well as financial and management assistance.

The country has recently witnessed the signing of an agreement between the Industry Ministry, the National Agency for the Promotion of SMEs, and the Moroccan Foundation of advanced Science, to promote industrial innovation and SMEs’ access to Research and Development capabilities. It is advised that agreements of this level be implemented with execution, maintenance, and improvement.

Figures

Figure 1 Impact of Trade Openness on SMEs’ Growth in Morocco