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Regulatory harmonization, profits, and productivity: Firm-level evidence from Morocco

Author

Listed:
  • Olivier CADOT

    (Faculté des hautes études commerciales - Université de Lausanne)

  • Patricia AUGIER

    (FERDI)

  • Marion DOVIS

    (FERDI)

Abstract
This paper combines a new database on non-tariff measures (NTMs) with Morocco’s firm census to explore the effect of regulatory harmonization with the E.U. on firm-level outcomes. Exploiting cross-sectoral variation in the timing and extent of regulatory harmonization, we find that harmonization waves correlate with rises in labor productivity and with higher markups, allowing self-financing of the adaptation process at the firm level. We identify an induced market-structure change that made the observed rise in markups possible. Namely, harmonization temporarily sheltered the Moroccan market from competition from low-end producers in other developing countries, who took time to adapt. We identified this effect through changes in both trade patterns and firm-level outcomes. Thus, harmonization apparently generated a self-financing adaptation process by affecting both firm-level incentives and market structure.Keywords : Morocco, Trade, Non-Tariff Measures, Firms, Harmonization, Profit, Productivity

Suggested Citation

  • Olivier CADOT & Patricia AUGIER & Marion DOVIS, 2016. "Regulatory harmonization, profits, and productivity: Firm-level evidence from Morocco," Working Papers P162, FERDI.
    • Handle: RePEc:fdi:wpaper:3162
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    File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/p162-ferdi-cadot_et_al-_regulatory_harmonization.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hendrik W. Kruse & Inma Martínez-Zarzoso & Leila Baghdadi, 2017. "Standards and Market Power: Evidence from Tunisia," Working Papers 1131, Economic Research Forum, revised 08 2017.

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    More about this item

    Keywords

    Morocco; Trade; Non-Tariff Measures; Firms; Harmonization; Profit; 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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    This paper has been announced in the following NEP Reports:

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