Regulatory harmonization with the European Union: opportunity or threat to Moroccan firms?

Patricia Augier, Olivier Cadot and Marion Dovis ()
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Patricia Augier: Aix-Marseille Univ., CNRS, AMSE
Marion Dovis: Aix-Marseille Univ., CNRS, AMSE

Review of World Economics (Weltwirtschaftliches Archiv), 2024, vol. 160, issue 3, No 3, 813-841

Abstract: Abstract This paper combines a database on non-tariff measures (NTMs) with Morocco’s firm-level census to explore the effect of regulatory harmonization with the E.U. on firms’ outcomes. Exploiting cross-sectoral variation in the timing and extent of regulatory harmonization, we find that harmonization waves correlate with rises in productivity, with higher markups and with greater numbers of exporting firms. These effects were reinforced by an induced market-structure change: harmonization temporarily protected the Moroccan market from competition from low-end producers in other developing countries, who took time to adapt. We identify these effects through changes in both trade patterns and firm-level outcomes.

Keywords: Trade; Non-tariff measures; Firms; Harmonizations; Morocco; Markup; Productivity (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10290-023-00515-3

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