Development of the banking sector and economic growth in Morocco: Econometric modeling with the ARDL model

The objective of this article is to study the relationship between the development of the Moroccan banking system and economic growth. For this, we adopted an econometric approach based on the estimation of an autoregressive model with distributed delays. This model, which belongs to the class of dynamic models, makes it possible to capture the temporal effects in the explanation of an endogenous variable. The results from the estimates of the coefficients of the models show that the effect of the development of the banking sector on economic growth in Morocco is a positive and significant effect in the short term. However, and in the long term, the effects of the development of the banking sector on economic growth in Morocco show negative and significant signs. Results that remain valid regardless of the variable used to capture the development of the banking system