Does Input Tariff Reduction Impact Firms Exports in the Presence of Import Tariff Exemption Regimes?

In the last decade Morocco undertook substantial, if gradual, trade liberalization by reducing tariffs, reforming trade regulations and signing free and preferential trade agreements with several regions and countries, including the United States, Turkey, the European Union and Arab countries. This paper analyzes the impact of input tariff reduction on Moroccan exporting firms through the channel of intermediate goods. Gaining access to more varied and cheaper inputs can make exporting firms more competitive, and as a result they export more. To evaluate how this policy may impact firms export performance, the paper analyzes the impact of input tariff reduction on different margins of trade with emphasis on export markets and product diversification. The identification of the effect of input tariffs on exports relies on a difference-in-difference estimator using heterogeneous access to import tariff exemption as a measure of different levels of exposure to input tariff reduction at the firm level. Overall, the analysis finds that firms that are relatively more exposed to input tariff perform better in those sectors with the largest input tariff reduction, with better access to markets, higher probability to survive when exporting new products in those sectors and higher export value growth.

Bibliographic Details

Main Authors:	Cruz, Marcio, Bussolo, Maurizio
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-04
Subjects:	TARIFFS, PRODUCER PRICE INDEX, EXPORT MARKETS, TRADE EFFECT, FREE TRADE AGREEMENT, WORLD TRADE ORGANIZATION, PRODUCTION, SUNK COSTS, IMPORT REGIMES, TRADE POLICY REVIEW, CHEMICAL, MARGINAL COST, INDUSTRY, EXPORT PERFORMANCE, IMPORT TARIFF, SUPPLIER, BALANCE OF PAYMENTS, GROWTH VOLATILITY, EXPORTS, DOMESTIC MARKET, EXPORTERS, EXPORT PRICES, TRADE ZONE, INCENTIVES, ECONOMIC POLICY, EQUILIBRIUM, DISTRIBUTION, VARIABLES, TRADE REFORMS, SPECIAL REGIMES, TRADE OPENNESS, PRICE, INPUTS, LOBBYING, PAYMENTS, INPUT PRICES, FREE TRADE, TRENDS, TRADE AGREEMENTS, FREE TRADE ZONES, TRADE REGULATIONS, FOREIGN MARKETS, CUSTOMS DUTIES, PREFERENTIAL TRADE AGREEMENTS, FOREIGN TRADE, EQUILIBRIUM THEORY, DEVELOPMENT ECONOMICS, FOREIGN SUPPLIERS, PRIMARY FACTORS, DOMESTIC INPUTS, TEXTILE INDUSTRY, TARIFF REDUCTION, CUSTOMS, PRODUCTS, SPECIALIZATION, ECONOMETRICS, PRODUCTIVITY, FREE TRADE ZONE, MARKETS, WTO, BALANCE OF PAYMENTS CRISES, ACCESS, TRADE MODELS, INTERNATIONAL ECONOMICS, RESEARCH, IMPORTS, TRADE POLICY, PRODUCT, TRADE AGREEMENT, EXPORT MARKET, TAXES, EXPORT VALUE, EQUILIBRIUM ANALYSIS, GENERAL EQUILIBRIUM, CONSUMPTION, UNILATERAL TRADE, ECONOMIC PERFORMANCE, INTERNATIONAL TRADE, VOLATILITY, VALUE, COMPETITIVENESS, PRODUCER PRICE, PRODUCTION FUNCTIONS, IMPORT VALUES, CUSTOMS REGULATIONS, DEMAND, INTERMEDIATE GOODS, TRADE AREA, TRADE REGIMES, OPENNESS, MARKET, TRADE LIBERALIZATION, ENDOGENOUS VARIABLES, PRODUCTION FUNCTION, CLOSED ECONOMY, CAPITAL GOODS, AVERAGE TARIFF, TRADE VALUE, TRADE ZONES, TRADE, GDP, TRADE PARTNERS, GOODS, THEORY, GENERAL EQUILIBRIUM ANALYSIS, FREE ZONE, INPUT TRADE, ECONOMIC CRISIS, PREFERENTIAL TRADE, TARIFF, IMPORT REGIME, TRADE LIBERALIZATION PROCESS, FREE TRADE AREA, TRADE PARTNER, WORLD TRADE, UNILATERAL TRADE LIBERALIZATION, DUTY DRAWBACKS, MOST FAVORED NATION, WHOLESALERS, SUPPLIERS, INTERMEDIATE INPUTS, PRICE INDEX, OUTCOMES, IMPORT DUTIES, IMPORT DUTY, IMPORT VALUE, TRADE REGIME, EXPORT SHARE, PRICES, VALUE OF EXPORTS, DEVELOPMENT POLICY, CUSTOMS REGIME,
Online Access:	http://documents.worldbank.org/curated/en/2015/04/24310279/input-tariff-reduction-impact-firms-export-presence-import-tariff-exemption-regimes-input-tariff-reduction-impact-firms http://hdl.handle.net/10986/21845
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