The Price Effect of Tariff Liberalization in Morocco: Measuring the Impact on Household Welfare - Economic Research Forum (ERF)

The Price Effect of Tariff Liberalization in Morocco: Measuring the Impact on Household Welfare

Mouna Cherkaoui, Ayache Khellaf and Abdelaziz Nihou

October, 2011


18 pages

Economic Research Forum (ERF)

J. Labor and Demographic Economics

This study analyses the distributive effects of tariff liberalization in Morocco. The results indicate that the impact on the household both as income earners and as consumers varies depending on whether the household is urban or rural. The pass-through is positive and significant but is smaller than expected. It stands at 13% for agricultural goods and at 16% percent for manufactured goods. The results show that liberalization has reduced the consumer prices of both the agricultural and manufactured goods and led to an increase of wages. The reduction in the prices of the goods meant an amelioration of household welfare however households that were net suppliers of agricultural goods saw their revenue decline. The overall effect of the reduction in tariffs is positive and leads to an increase in aggregate household income at 2.7%. This is due primarily to an increase in spending of 2.8% and of wages for 0.8%. The losses due to the reduction in the price of agricultural products are estimated at 0.9%.

Arabic Abstract:

تقوم هذه الدراسة بتحليل الآثار التوزيعية لتحرير التعريفات الجمركية في المغرب. وتشير النتائج إلى أن تأثير ذلك على الأسرة وذوي الدخل كمستهلكين، على حد سواء، يختلف اعتمادا على ما إذا كانت العائلة في المناطق الحضرية أو الريفية. التمريري ايجابية وهامة لكنها أصغر مما كان متوقعا. انها تقف عند 13 فى المائة بالنسبة للسلع الزراعية في المئة و 16 فى المائة على السلع المصنعة. وأظهرت النتائج أن تحرير التعريفات الجمركية ادت الى خفض أسعار المستهلك من السلع الزراعية والمصنعة على حد سواء، وأدت إلى زيادة الأجور. انخفاض أسعار السلع يعني تحسين الرعاية المنزلية ولكن الأسر التي كانت غير موردة للسلع الزراعية شهدت انخفاض في إيراداتها. التأثير الكلي للانخفاض في الرسوم الجمركية إيجابي ويؤدي إلى زيادة في إجمالي دخل الأسرة بنسبة 2.7 فى المائة. هذا يرجع أساسا إلى زيادة في الإنفاق بنسبة 2.8 فى المائة والأجور عن 0.8 فى المائة. وتقدر الخسائر الناجمة عن الانخفاض في أسعار المنتجات الزراعية على 0.9 فى المائة.
Research Fellows

Mouna Cherkaoui

Professor, Mohamed V University

Ayache Khellaf

Abdelaziz Nihou



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