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: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université
Marion Dovis: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université

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Abstract: This paper combines a database on non-tari measures (NTMs) with Morocco's rm-level census to explore the eect of regulatory harmonization with the E.U. on rms' outcomes. Exploiting cross-sectoral variation in the timing and extent of regulatory harmonization, we nd that harmonization waves correlate with rises in productivity, with higher markups and with greater numbers of export- ing rms. These eects 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 eects through changes in both trade patterns and rm-level outcomes.

Keywords: Trade; Non-Tariff Measures; Firms; Harmonizations; Morocco; Markup; Productivity (search for similar items in EconPapers)
Date: 2024
Note: View the original document on HAL open archive server: https://hal.science/hal-04590040v1
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Published in Review of World Economics, 2024, 160, pp.813-841. ⟨10.1007/s10290-023-00515-3⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04590040

DOI: 10.1007/s10290-023-00515-3

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