The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis

Abstract

In this paper, we examine the effects of the open skies agreement signed between the EU and Morocco in December 2006. Specifically, we exploit the fact that Morocco was the only country in North Africa to sign such an agreement and that the pre-liberalization traffic in all North African countries presented a common trend. We use data at the route level for the period 2003-2010 to run difference-in-differences regressions and to test for heterogeneous responses. We find a 20-40% increase in the number of seats offered on pre-existing routes and a notable increase in the number of new routes offered.