EFFECTS OF MOROCCAN TRADE LIBERALIZATION OF REGIONAL EXPORTS

In this paper we analyse the impact of the free trade area between the EU and Morocco on the exports of the Spanish regions to this country. We estimate a gravity model using data disaggregated by region and industries for the period 1999-2002. The main methodological contribution of this paper is to explicitly take into account tariffs at the industry level. This data not only improves the quality of the estimation, but also allows us to simulate the tariff-dismantling taking into account the schedule and amount of the tariff reduction by industry and year.