IMPACT OF SWIFT TRANSACTIONS ON THE ECONOMIC DEVELOPMENT OF MOROCCO

Inass Bouayach, Moad El Kharrim, Mohamed Dakkon

Abstract


The modernization of payment systems – the global SWIFT (Society for Worldwide Interbank Financial Telecommunication) network is generally regarded as an enabler of financial integration and economic growth. This paper offers a test of the impact of digitalization of the financial sector via SWIFT on the economic development of Morocco, looking at channels such as international trade, foreign direct investment (FDI) and productive capital investment. We employ annual data from the period 2000-2023 and perform stationarity tests and Granger causality analysis in this paper, then estimate a multiple regression model by the Ordinary Least Squares (OLS) method and a two-stage least squares (2SLS) model to treat the potential endogeneity of the SWIFT variable. The results show that more SWIFT transaction is related to higher GDP, but the effect is positive yet small and depends on the economic sector and the quality of investment. The trade openness has a mixed relationship with growth (including negative effects at some points), and FDI inflows have a limited contribution to GDP growth. These findings indicate that the digitalization of transactions through SWIFT can improve the effectiveness and robustness of the financial sector, but it must be supported by policies that enhance export competitiveness and direct investments towards sustainable economic development.

 

JEL: F36, O11, O33, F14, F21

 

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Keywords


SWIFT transactions, economic development, financial digitalization, international trade, foreign direct investment

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v8i8.1933

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