The Effect of Trade Liberalization on the Consumption Function in Morocco
K. M. Casey, J. B. Duncan (Assistant Professor of Accounting,University of Louisiana at Monroe ), J. N. Roge, S. Mehta
Download Article | Published On 01/07/2001

Abstract

This paper investigates the impact of the 1983 trade liberalization and inflation on the consumption function of Morocco. Findings indicate that trade liberalization and moderate inflation had little impact on consumption. The results do, however, show strong support for the permanent income hypothesis because lagged consumption was found to be significant in predicting current consumption.

Keywords

Morocco, trade liberalization, inflation, consumption.

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