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

Author

Listed:
  • Patricia Augier

    (Aix-Marseille Univ., CNRS, AMSE)

  • Olivier Cadot

    (University of Lausanne, CEPR, FERDI)

  • Marion Dovis

    (Aix-Marseille Univ., CNRS, AMSE)

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.

Suggested Citation

  • Patricia Augier & Olivier Cadot & Marion Dovis, 2024. "Regulatory harmonization with the European Union: opportunity or threat to Moroccan firms?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(3), pages 813-841, August.
    • Handle: RePEc:spr:weltar:v:160:y:2024:i:3:d:10.1007_s10290-023-00515-3
    DOI: 10.1007/s10290-023-00515-3
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    More about this item

    Keywords

    Trade; Non-tariff measures; Firms; Harmonizations; Morocco; Markup; Productivity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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