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Policy Brief
Morocco has seen the share of manufacturing in total output and employment decline since the turn of the millennium, together with a worsening in the manufacturing employment trend since the global financial crisis of 2008 (Figure 6.1). Morocco is not alone in experiencing these developments (Dasgupta and Singh 2006; Rodrik 2015). In advanced countries, many consider these trends “normal” given the low income-elasticity of manufacturing products. Moreover, if labor productivity advances more rapidly in manufacturing than in services, the manufacturing share of employment, as well as the relative price of manufactures, would be expected to decline (Baumol 1967; Rowthorn and Ramaswamy 1997).