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Regulatory harmonization with the European Union: Opportunity or threat to Moroccan firms? * †

Author

Listed:
  • 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)

  • Olivier Cadot

    (University of Liverpool, School of Engineering - UC Merced - University of California [Merced] - UC - University of California)

  • 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)

Abstract

This paper combines a database on non-tari measures (NTMs) with Morocco's rm-level census to explore the e ect 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 e ects 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 e ects through changes in both trade patterns and rm-level outcomes.

Suggested Citation

  • Patricia Augier & Olivier Cadot & Marion Dovis, 2023. "Regulatory harmonization with the European Union: Opportunity or threat to Moroccan firms? * †," Post-Print hal-04590040, HAL.
    • Handle: RePEc:hal:journl:hal-04590040
    DOI: 10.1007/s10290-023-00515-3
    Note: View the original document on HAL open archive server: https://hal.science/hal-04590040
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