Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco
This paper studies the effect of market distortions in the manufacturing sector in Morocco. Recent microdata are used to calculate the extent of resource misallocation associated to these distortions and the potential total factor productivity (TFP...
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| Online Access: | http://documents.worldbank.org/curated/en/926251507902541656/Product-and-factor-market-distortions-the-case-of-the-manufacturing-sector-in-Morocco http://hdl.handle.net/10986/28553 |
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okr-10986-285532021-06-08T14:42:45Z Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco Chauffour, Jean-Pierre Diaz-Sanchez, Jose L. TFP MARKET DISTORTIONS RESOURCE MISALLOCATION PRODUCTIVITY MANUFACTURING This paper studies the effect of market distortions in the manufacturing sector in Morocco. Recent microdata are used to calculate the extent of resource misallocation associated to these distortions and the potential total factor productivity (TFP) gain resulting from their removal. Market distortions in the manufacturing sector in Morocco are higher compared with developed countries and slightly more important compared with other developing countries, such as China and India. These distortions decreased between 2007 and 2013. Full liberalization would raise TFP by about 84 percent. If distortions are removed to the level of selected developed countries with better resource allocation, the increase in TFP would be of 56 percent. The paper also finds that industries that are more opened to competition (international and domestic) such as machinery and textiles industries present lower levels of market distortions compared with more protected industries with relatively little competition, such as the food industry. Besides, a higher level of TFP can be achieved if more resources are allocated to “young” and “small” firms. The main results of the paper are robust to an alternative estimation that uses a different methodological framework with a less extensive theoretical framework. The paper discusses policies to further limit the extent of product and factor market distortions in Morocco. 2017-10-20T21:31:43Z 2017-10-20T21:31:43Z 2017-10 Working Paper http://documents.worldbank.org/curated/en/926251507902541656/Product-and-factor-market-distortions-the-case-of-the-manufacturing-sector-in-Morocco http://hdl.handle.net/10986/28553 English en_US Policy Research Working Paper;No. 8218 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Morocco |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TFP MARKET DISTORTIONS RESOURCE MISALLOCATION PRODUCTIVITY MANUFACTURING |
| spellingShingle |
TFP MARKET DISTORTIONS RESOURCE MISALLOCATION PRODUCTIVITY MANUFACTURING Chauffour, Jean-Pierre Diaz-Sanchez, Jose L. Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| geographic_facet |
Middle East and North Africa Morocco |
| relation |
Policy Research Working Paper;No. 8218 |
| description |
This paper studies the effect of market
distortions in the manufacturing sector in Morocco. Recent
microdata are used to calculate the extent of resource
misallocation associated to these distortions and the
potential total factor productivity (TFP) gain resulting
from their removal. Market distortions in the manufacturing
sector in Morocco are higher compared with developed
countries and slightly more important compared with other
developing countries, such as China and India. These
distortions decreased between 2007 and 2013. Full
liberalization would raise TFP by about 84 percent. If
distortions are removed to the level of selected developed
countries with better resource allocation, the increase in
TFP would be of 56 percent. The paper also finds that
industries that are more opened to competition
(international and domestic) such as machinery and textiles
industries present lower levels of market distortions
compared with more protected industries with relatively
little competition, such as the food industry. Besides, a
higher level of TFP can be achieved if more resources are
allocated to “young” and “small” firms. The main results of
the paper are robust to an alternative estimation that uses
a different methodological framework with a less extensive
theoretical framework. The paper discusses policies to
further limit the extent of product and factor market
distortions in Morocco. |
| format |
Working Paper |
| author |
Chauffour, Jean-Pierre Diaz-Sanchez, Jose L. |
| author_facet |
Chauffour, Jean-Pierre Diaz-Sanchez, Jose L. |
| author_sort |
Chauffour, Jean-Pierre |
| title |
Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| title_short |
Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| title_full |
Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| title_fullStr |
Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| title_full_unstemmed |
Product and Factor Market Distortions : The Case of the Manufacturing Sector in Morocco |
| title_sort |
product and factor market distortions : the case of the manufacturing sector in morocco |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/926251507902541656/Product-and-factor-market-distortions-the-case-of-the-manufacturing-sector-in-Morocco http://hdl.handle.net/10986/28553 |
| _version_ |
1764467131167014912 |