What is it about?

This study explores how corruption impacts businesses in Morocco, using new data from 554 companies. It finds that bribery and informal payments can help companies grow their domestic sales by bypassing bureaucracy. However, these same corrupt practices hurt their ability to export goods and compete internationally. In short, corruption may offer short-term benefits for operating in the local market but creates long-term barriers for global trade. The research suggests Morocco needs stronger institutions and anti-corruption measures to help firms expand beyond national borders.

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Why is it important?

Our study offers the first firm-level evidence from Morocco on how corruption simultaneously boosts domestic sales while harming export performance. Unlike most research that focuses on broad economic impacts, we show how individual businesses adapt their strategies to corruption in real time. This is especially relevant now, as Morocco faces growing global trade ambitions but continues to struggle with governance challenges. By combining new data from over 550 Moroccan firms with advanced propensity score matching techniques, our work provides timely insights into how corruption distorts market dynamics—offering short-term advantages locally, but limiting international competitiveness. These findings are critical for policymakers, entrepreneurs, and researchers interested in improving business performance in emerging economies facing institutional weaknesses.

Perspectives

Writing this article was a meaningful experience for me as it connects my long-standing research interests in governance, development, and firm performance. Corruption is often discussed in abstract terms, but through this study, we were able to show its very real, day-to-day impact on Moroccan businesses—their ability to grow, compete, and access global markets. I hope this work encourages more open dialogue about the hidden costs of corruption and inspires evidence-based solutions to help firms, especially small and medium enterprises, thrive in challenging environments.

Pr Mariem Liouaeddine
Universite Ibn Tofail Kenitra

This research gave me the opportunity to move beyond abstract debates and explore how corruption operates as a structural constraint on firm performance in Morocco. One of the most striking findings is the concave effect of corruptio where its presence might appear manageable or even bypassable for some firms at low levels, but becomes increasingly damaging as it deepens, ultimately eroding competitiveness, discouraging innovation, and limiting access to global markets. By connecting field data with broader questions of governance and development, this study reinforced my belief in the importance of evidence-based policymaking. I hope it contributes to more nuanced discussions on how corruption evolves within business ecosystems and how targeted reforms can help firms, especially SMEs, thrive in more transparent environments.

chaimae KRICHI
Universite Ibn Tofail Kenitra

Read the Original

This page is a summary of: Corruption and business dynamics in Morocco: Evidence from the World Bank Enterprise Survey, Journal of the International Council for Small Business, July 2025, Taylor & Francis,
DOI: 10.1080/26437015.2025.2513967.
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