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Trade Liberalization and Growth: Plant-Level Evidence from Switzerland

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  • Bühler, Stefan
  • Helm, Marco
  • Lechner, Michael

Abstract

This paper estimates the effect of trade liberalization on growth, using plant-level data from Switzerland. We employ a natural experiment framework to quantify the effect of a bundle of treaties liberalizing trade between Switzerland and the EU enacted in June 2002 ("Bilateral Agreements I") on the growth of Swiss plants. Using both a semi-parametric difference-indifferences and a matching approach, we find that the liberalization of trade increased the growth of affected plants by 1-2 percent during the first six years after liberalization. Our results suggest that trade liberalization has a relevant effect on growth.

Suggested Citation

  • Bühler, Stefan & Helm, Marco & Lechner, Michael, 2011. "Trade Liberalization and Growth: Plant-Level Evidence from Switzerland," Economics Working Paper Series 1133, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2011:33
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    Cited by:

    1. Buehler, Stefan & Burghardt, Dirk, 2013. "Globalization and Vertical Structure: An Empirical Investigation," Economics Working Paper Series 1310, University of St. Gallen, School of Economics and Political Science.
    2. Piera Bello & Vincenzo Galasso, 2020. "Old before their time: the role of employers in retirement decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1198-1223, October.
    3. Piera Bello & Vincenzo Galasso, 2020. "Old before their time: the role of employers in retirement decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(5), pages 1198-1223, October.
    4. Oswald-Egg, Maria Esther & Siegenthaler, Michael, 2023. "Train drain? Access to foreign workers and firms’ provision of training," Labour Economics, Elsevier, vol. 85(C).
    5. Poyker, Mikhail (Пойкер, Михаил) & Baeva, Marina Alekseevna (Баева, Марина Алексеевна), 2014. "Armenia, Moldova, and Tajikistan: Is it Possible to Interact with the Customs Union and Common Economic Space Without Joining Them? [Армения, Молдова И Таджикистан: Возможно Ли Взаимодействие С Там," Published Papers om21, Russian Presidential Academy of National Economy and Public Administration.
    6. Andreas Beerli & Giovanni Peri, 2015. "The Labor Market Effects of Opening the Border: Evidence from Switzerland," NBER Working Papers 21319, National Bureau of Economic Research, Inc.
    7. Beverelli, Cosimo & Keck, Alexander & Larch, Mario & Yotov, Yoto, 2018. "Institutions, Trade and Development: A Quantitative Analysis," School of Economics Working Paper Series 2018-3, LeBow College of Business, Drexel University.
    8. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," KOF Working papers 21-495, KOF Swiss Economic Institute, ETH Zurich.
    9. Dibiasi, Andreas & Abberger, Klaus & Siegenthaler, Michael & Sturm, Jan-Egbert, 2018. "The effects of policy uncertainty on investment: Evidence from the unexpected acceptance of a far-reaching referendum in Switzerland," European Economic Review, Elsevier, vol. 104(C), pages 38-67.
    10. Knobel, Alexander (Кнобель, Александр) & Kazaryan, Margarita (Казарян, Маргарита) & Kuznetsov, D.E. (Кузнецов, Д.Е.) & Sedalishchev, V.V. (Седалищев, В.В.) & Firanchuk, Alexander (Фиранчук, Александр), 2016. "Economic Benefits, Costs and Risks for Russia on Trade and Economic Alliances with Countries of CIS, Europe and the USA Contact [Экономические Выгоды, Издержки И Риски Для России От Торгово-Экономи," Working Papers 1854, Russian Presidential Academy of National Economy and Public Administration.
    11. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," KOF Working papers 21-495, KOF Swiss Economic Institute, ETH Zurich.
    12. Vinokurov, Evgeny, 2013. "EDB Eurasian Integration Yearbook 2013," MPRA Paper 61618, University Library of Munich, Germany.

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    More about this item

    Keywords

    Trade liberalization; growth; plant size; policy evaluation;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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