A CONTRIBUTION TO THE UNDERSTANDING OF THE DETERMINANTS OF FDI ATTRACTED IN THE FRAMEWORK OF DELEGATED MANAGEMENT OF ELECTRICITY WATER SUPPLY AND SANITATION OF LIQUID SEWAGE IN MOROCCO

The formation of public debt in Morocco is the result of years of economic policies. How the debt of the treasure reached this level 64% of GDP. The debt tolerance threshold in Morocco is 60% of GDP, making difficult its sustainability. We have a challenge of economic policy at the service of economic growth. In the sense of economic policies based on supply and in order to find alternatives for financing economic and social projects in Morocco, we have tried in the scope of this article to analyze the determinants of FDI attracted in the framework of distribution delegated management.

The formation of public debt in Morocco is the result of years of economic policies. How the debt of the treasure reached this level 64% of GDP. The debt tolerance threshold in Morocco is 60% of GDP, making difficult its sustainability. We have a challenge of economic policy at the service of economic growth. In the sense of economic policies based on supply and in order to find alternatives for financing economic and social projects in Morocco, we have tried in the scope of this article to analyze the determinants of FDI attracted in the framework of distribution delegated management.

Background And Purpose Of Research
In Morocco, the formation of public debt is the result of years of economic policies. How Morocco has arrived to this debt of the treasure 64% of GDP?. We were in 2001 to 67%, said (El Azami, 2016, November), and in 2008 we got to floor 47% of GDP. But between 2009 and 2014, the pace of debt growth was accelerated rate, approximately 4.1% of GDP, due to public policy stimulus declined to support domestic demand and investment to cope with the imported international financial crisis. In fact, between 2008-2012, the weight of public investment has doubled over the period between 2005 and 2008 (330 billion dirhams), about a cumulative of 653 billion dirhams, next to the wage increases, the compensation system and the reform of direct taxes: IT (income tax) and CT(Corporation tax).
the research object of our article is: An economic policy at the service of growth, what is perspectives ?

Problems, Assumptions And Research Question
In fact, on the basis of the budget constraint, the government must maintain a level of debt lower than the tolerance threshold, which is 60% (Ouafaa & Youssef, 2012), while taking advantage of the periods of the boom to reduce ISSN: 2320-5407 Int. J. Adv. Res. 5 (11), 163-172 164 the fiscal deficit, and therefore the public debt. The government also has to promote the microeconomic impact of spending on education, health and infrastructure to boost economic growth(El Mokri, ragbi & Tounsi, 2015).
So, Morocco, to avoid the negative impact of fiscal policy on growth, the theoretical and empirical literature offers: -Optimal mixes between the three modalities of financing the deficit are: external borrowing, domestic borrowing and money creation (Bendaoud, 2008). -The control of public spending by multiannual programming and the medium term expenditure contracts (Abdellatif, 2008) -The government must rely on growth driven by economic policy of supply and not only by the economic policies of the demand (Bendaoud, 2008) including financing economic and social projects by the privatepublic partnerships as a form of financial governance and attracting FDI are part (Yang ans ale., 2016).
In this context, and as part of our doctoral thesis, our purpose is: A contribution to the understanding of the determinants and effects of FDI attracted in the framework of delegated management of electricity water supply and sanitation of liquid sewage in Morocco.
As part of our article, we have tried to understand just the determinants of FDI attracted in the framework of delegated management of electricity, water supply and sanitation of liquid sewage in Morocco. Our research hypothesis is: The economic, political and institutional factors would positively influence the FDI attracted in the framework of delegated management of electricity, water supply and sanitation of liquid sewage in Morocco Our research question related to our problem is: -Is there a relationship between the economic, political and institutional and FDI attracted under distribution delegated management in Morocco?

Research Approach, Methodology And Research Steps
Our research approach is a macro economic positivistic approach. As part of our research, the chosen methodological paradigm is the analysis of reality by using the laws of causality and pragmatism, to identify the determinants of FDI attracted in the context of delegated management, and conclude laws general economic (Rachidi & Ennaji,1996) and (Jaidi & Laraki, 1997). Our research hypothesis is the result of a hypothetico deductive approach.

Size And Fields Of Study
Our scale study of the determinants of public-private partnerships is mesoeconomics (Bauchet, 1977) and (Bar & Mouline, 1995).In this sense, our field study that we have chosen within our research is delegated companies operating in (High Planning Commission, 2017).: -Section D: production and distribution of electricity, gas, steam and air conditioning -Section E: production and distribution of water; sanitation of liquid sewage, waste management and depollution -Section H: Transportation and Storage

The Elements Of Our Sample
Given the importance of the amounts of investments expected over the contract period for local public distribution services, which are in the order of 48,000 M MAD financed by the private delegates, the delegating authority and the customers (Courts of Auditors, 2014), and given the availability of the data sources concerning the delegated companies, the method of selection of the individuals of the sample used is the empirical method based on reasoned choices.

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To take advantage of the comparison between the the distribution delegated management in Morocco and France, we have considered in our sample aggregated data on capital flows of distribution foreign delegatees in France.
So our sample consists of capital flows of foreign delegatees of water, electricity and sanitation of liquid sewage in France and Morocco for the period 2000 and 2017, allowing us to study 36 observations.
Variables:-When it regards FDI attracted under delegated management. This variable concern the stock of FDI, equity flows and reinvested earnings to reported GDP as defined and published in the statistics of the World Bank. Due to lack of data on the distribution of FDI by country and then by sector, by industry, by sub branches and activities, we tried to extract data directly on FDI balance sheets of foreign delegates distribution: So to increase the opportunity to use just concernants data revenues of foreign direct investments attracted in the context of delegated management of electricity water supply and sanitation of liquid sewage , we mobilized the amounts of the branch N° 36 (Corresponds to the division N° 36 of French activities the nomenclature). Finally, these two variables represent the proxy used for the foreign capital flows of distribution foreign delegatees. In fact, our interest is the measurement of the reaction of these capital flows to macro determinants of FDI and their effects on the local private investment. Given that, in the water sector, it is the National Office of Potable Water (NOPW), which ensures the entire production of potable water, while the water distribution and sanitation of liquid sewage are partly NOPW and partly by authorities and foreign delegatees (OECD, 2010) .In France too, the management of potable water and waste water is the responsibility of municipalities or their groups. It can be also provided by the town (called management "in-house") or delegated to private companies (NMSPWS, 2007) and (DETD, 2011).
Then the variables in our model are: -FDI_PPP : is the ratio of FDI flows attracted within the delegated management by gross domestic product at current prices, -Lagged FDI_PPP: is the proof of continuity of PPPs attracting (autoregressive variable) -Lagged GROW : is the previous year's economic growth rate which the studies of greenfield projects are based on. -OPEN : Shows the opening rate cross-border barriers, it is negative sign in the case of horizontal FDI "Tariff jumping" in, and a positive sign in the opposite case (Export + Import of good and service / GDP).

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-R: is the real exchange rate has a wealth effect, valuing the active cross-border capital, and an effect on the productive activities of the host countries reflecting relative production costs. -CONSU: is the total consumption by GDP. It is an attractive factor of Greenfields, -UNEMP: is the unemployment rate .A high unemployment is a FDI motivator, enabling low labor costs and the abundance of labor -CAPIT: is the market capitalization of listed companies is a threat related to the degree of concentration of capital to a smaller number of large group. -S  : is the growth rate of gross saving is a sign of financial sector of good quality, and therefore a motivating factor for FDI.
Additional variables are SUP: -INF: A high inflation rate is a sign of tension in the market for goods and services and in the money market. It also reflects an inability or unwillingness of fiscal and monetary authorities to control the money supply in circulation -FUEL: The share of oil in total exports of goods. It concerns the vertical FDI.
-DEBT: is the gross public debt ratio. A high level of public debt hints at restrictive policies implying lower demand, rising taxation and therefore a less attractive investment environment. -BUSFREE: is an institutional explanatory variable represented by the freedom of undertaking .The index is an index ranging from 0 to 100, 100 symbolizing the least environmental binding as possible to do business.  by (Prost, 2012).

Results and Discussion:-
As part of our article, the research object is the outlook for economic policies at the service of growth. Our research question is the contribution to the understanding of the determinants of FDI attracted in the framework of delegated management of electricity water supply and sanitation of liquid sewerage. Our research hypothesis is: The economic, political and institutional factors would positively influence the FDI attracted under distribution delegated management in Morocco. Lastly, our research question is: Is there a relationship between the economic, political and institutional factors and FDI attracted under distribution delegated management in Morocco?
We have answered this question based on the regression results above:  Notes: * ** *** represents respectively statistical significance at the 1%, 5% and 10%, the t-statistics are shown in parentheses.

Source: Prepared by us under the Eviews software
Regression N°2 seems significant and respects the assumptions of error normality (Jarque-Bera test), homoscedasticity (White test, see Appendix) and non autocorrelation errors (Durbin Watson Test).
Thus according to the regression N°2, the lagged FDI_PPP variables, the lagged GROW, R, and CONSU S  have a statistically insignificant coefficient, while the other variables reveal a statistically significant coefficient to the above thresholds.
We regard the variables associated with a non-significant coefficient, they not represent for FDI attracted in the context of delegated management a locational factors. For the lagged growth and lagged capital flows, the delegates of distribution have already exceed the FDI greenfield project preparation phase to be worry of the pace of market growth and continuity of delegates capital flows (Prost, 2012). When the exchange rate and the growth of the gross savings it concerned, they show a positive sign of wealth and liquidity effect. Finally, the total consumption is a negative sign, which is quite contrary to the expectations of greenfield FDI in search of market Moreover, the variables OPEN, UNEMP, CAPIT and INF are associated with statistically significant coefficient, demonstrating their importance in locating horizontal FDI attracted in the framework of delegated management of electricity water supply and sanitation of liquid sewerage. The open rate has little impact on flows of capital delegated, can be seen in the nature of the service provided by these direct investors. The unemployment rate is a negative sign implying that this variable is a demotivating factor of delegates of distribution. On the side of the market capitalization, the negative sign of this variable shows distrust of delegates of distribution to large local business groups. Finally, the inflation rate is a sign of tension in the market for goods and local services, and setting short-term price (Schneider & Frey, 1985) and (Trevino, Daniels & Arbelaez, 2002).

Conclusion:-
For economic policies at the service of growth, FDI attracted in the framework of delegated management of electricity water supply and sanitation of liquid sewerage in Morocco will both reduce the use of fiscal deficit, financing economic and social projects of the government and promote 'economy. In this sense, the attraction of FDI is still based on economic, political and institutional factors. In Morocco, and as an answer to our research question, FDI attracted in the context of delegated management of distribution do not pay interest on lagged capital flows, a lagged economic growth, the real exchange rate, the total consumption and the growth of gross savings in their localization. But they are influenced by the degree of openness, the unemployment rate, the market capitalizat ion and the rate of inflation.
The question is the different effects of FDI attracted in the context of delegated management of distribution on the economy. Does he have a complementary or substitution effect on local investment ?