FEMISE Research Paper FEM43-03: Morocco and Tunisia in Global Value Chains: focus on business services as innovation drivers

20-02-2019
FEMISE Research Paper FEM43-03: Morocco and Tunisia in Global Value Chains: focus on business services as innovation drivers
FEMISE research paper 43-03

In this report FEMISE will argue that for a better understanding of how business services can contribute to competitiveness and growth in Morocco and Tunisia decomposing trade flows in terms of value added can be a useful first step.

The authors start from the OECD-WTO Trade in Value Added database (OECD, 2016) to decompose exports in value added in business services from Morocco and Tunisia to the EU28 and to the rest of the world. This decomposition is used to compute several indicators of participation in the GVCs. Two business services industries are examined: computer and related activities and R&D and other business activities.

Combining an adequate trade liberalisation and investment policy reforms and the promotion of business linkages between foreign and domestic firms could help local companies move up to GVCs thanks of the transfer of knowledge, skills and technology.