Infrastructure, Trade facilitation and participation in global value chains: evidence from ARDL bounds testing approach

Abstract

Morocco's participation in global value chains has increased considerably in recent decades. This can be attributed to improved infrastructure, which has enhanced logistics and product transshipment. Trade facilitation measures have also played a key role in accessing international markets. The aim of this article is to provide empirical evidence of the relation between infrastructure, trade facilitation and Morocco's participation in global value chains. In this regard, the application of the ARDL model was appropriate for the object of the study and the nature of the data used. Empirical results show a positive relationship between infrastructure improvements and backward and forward participation. Trade facilitation through lower trade costs and non-tariff measures contributes positively to improving this participation. Based on the results obtained, practical policy implications are discussed.