Developing countries that manage to upgrade and diversify their export profile grow more
rapidly and achieve greater welfare gains than countries that simply export larger volumes of
what they have traditionally produced.
This discussion paper examines what market imperfections and other impediments make the
task of using FDI for structural transformation so difficult. Drawing on country case studies
from Malaysia, Costa Rica, the Czech Republic, and South Africa, the paper identifies best
practices for making progress, on the one hand, and examining impediments that lead to failure,
on the other.
This study has been prepared to serve as the basis for a workshop at which on-the-ground
practitioners in Morocco can view their country’s efforts at structural transformation in light
of similar experiences elsewhere. The objective is to highlight accomplishments and raise
questions about future obstacles for Morocco’s aerospace sector, for the automotive cluster in
Tangier Med, for OCP, and for investment promotion via the Moroccan Agency in Charge of
Promoting Foreign Direct Investment .
