Public debts and State-Owned Enterprises investments: the case of Morocco

In Morocco, the debate on the issue of rising public debt has steadily increased in recent years. As such, the public authorities say that it is the only way to overcome economic constraints. It is also a necessary means to continue the public investment effort and the improvement of the indicators of the national economy. The aim of this paper is to provide an empirical study of the cause relationship between public debt, especially, SOEs debt, external public debt with SOE investment. The study was based on annual time series data for six macroeconomic variables for a period of 27 years from 1990 to 2016. The results indicated that there is a positive relationship between SOEs indebtedness and their investment in the short and long-run