COVID‐19 and the fate of Moroccan female‐led firms: Regional level evidence

Abstract

This study examines the effects of the coronavirus disease 2019 (COVID‐19) pandemic on Moroccan female‐led firms, considering both short‐term and long‐term impacts. It investigates the influence of different pandemic waves on these firms, taking into account their size and location, to gain valuable insights into their crisis management strategies. Using a micro‐level database made up of 1,096 Moroccan firms observed during the initial three waves of the pandemic, we extract data from the World Bank ‘Enterprise Survey: impact on firms’ database. Our analysis, using a logit model, reveals that the impact of the pandemic varied by the gender of the firm head and survey period. Female‐led firms were more severely affected by the health crisis compared with their male peers. The quick application of policy adaptations played a crucial role in reducing the impact of the health crisis on male‐led enterprises. Small firms, particularly those situated in regions such as Beni Mellal‐Khenifra, Drâa‐Tafilalet, Oriental, and Marrakech‐Safi, have been significantly affected by the COVID‐19 crisis. This study makes two key contributions. Firstly, it provides an empirical analysis of the pandemic's impact on Moroccan firms using enterprise‐level data, which is unprecedented in Morocco. Secondly, it investigates the repercussions of the pandemic on female‐led Moroccan firms of varying sizes and regions, acknowledging the disproportionate impact on women during economic crises. The study aims to offer valuable insights for supporting the recovery of female‐led firms in the future. Our findings emphasize the importance of targeted assistance for small firms and those located in affected regions to mitigate the crisis's consequences and promote economic revival. These businesses play a crucial role in the local economy, and supporting their survival and resilience in the post‐COVID‐19 era is essential.

Unveiling the drivers of Africa's digital financial inclusion journey

“…The selection of an appropriate instrumental variable is crucial; in our case, we based our choice on previous literature that investigated the determinants of digital financial inclusion (Ezzahid & Elouaourti, 2021a, 2021b and the participation in the labor market (Elouardighi & Oubejja, 2023a;Ibourk & Elouaourti, 2023a. The ideal instrumental variable for our IV approach must explain involvement in the labor market (a strong instrument) but not affect digital financial inclusion except through its impact on participation in the labor market (exclusion restriction).…”