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Why do multinational enterprises in the auto parts industry set up in Morocco?
Karina Alfaro-Moreno
Luis F. Rivera-Galicia
Imad Bakkali
Journal of Infrastructure Policy and Development 2024, 8(7), 4689; https://doi.org/10.24294/jipd.v8i7.4689
Submitted：19 Feb 2024
Accepted：28 Mar 2024
Published：02 Aug 2024
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Abstract

The Moroccan economy has undergone significant structural changes since the 1980s. Attracting Foreign Direct Investment (FDI) has been a key strategy for the country’s economic growth and development, particularly in some specific high value-added sectors, such as the automotive supply industry. This paper uses the results of a survey to examine the reasons why multinational enterprises (MNEs) in the automotive supply sector set up in Morocco. Our findings show that proximity to Europe and labor costs and skills are the most important considerations for investing in this sector in Morocco. However, some institutional issues are still of concern to these MNEs.

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References
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