Can the Social and Solidarity Economy Reduce Multidimensional Territorial Poverty? Evidence from Moroccan Communes

Abstract

Persistent territorial inequalities continue to shape development trajectories across Morocco, particularly in rural and structurally disadvantaged communes. The Social and Solidarity Economy (SSE) has emerged as a potential mechanism for fostering inclusive local development, yet researchers still know relatively little about its territorial effects. This study examines whether and to what extent SSE activity contributes to reducing multidimensional territorial poverty at the commune level. Using data from the 2024 General Population and Housing Census covering 1,501 communes, we construct composite indicators that capture the education, employment, and health dimensions of poverty. We then apply quantile regression and spatial econometric models (SAR and SEM) to capture heterogeneity across poverty levels and account for spatial interdependencies. Results reveal that the association between SSE activity and poverty reduction is uneven but significantly stronger in communes with higher baseline deprivation, suggesting a targeted catch-up dynamic. Spatial models highlight substantial neighborhood effects, indicating that local development outcomes are influenced not only by communes’ SSE intensity but also by conditions in neighboring communes. While SSE presence is positively associated with improvements in educational outcomes, its effects on employment and health are more context-dependent, shaped by local institutional capacity and economic structures. Overall, the findings suggest that SSE can support multidimensional poverty reduction in disadvantaged communes, but its effectiveness is conditional on local governance, infrastructure, and broader territorial dynamics. This research contributes to the literature by providing a territorially grounded, empirically robust assessment of SSE’s role in promoting inclusive local development in the Global South.