The Changing International Linkages of Switzerland: An Overview

22 Pages Posted: 4 Aug 2017

See all articles by Cédric Tille

Cédric Tille

Graduate Institute of International and Development Studies (HEI)

Date Written: July 2017

Abstract

Over the last decade, the economic linkages between Switzerland and the rest of the world have been transformed. First, merchanting and the chemical industry account for an increasing share of international trade, with chemicals exports expanding robustly in recent years despite the European crisis and the strong Swiss franc. Second, the nature of international financial integration has changed. While private investors drove Switzerland's financial flows and net foreign assets before the financial crisis, the foreign reserves accumulation by the Swiss National Bank has been playing a major role since. Third, asset prices and foreign exchange movements led to substantial capital losses in foreign assets which fully absorbed the surplus on the current account. Finally, the crisis has weakened the role of foreign trade as an engine of growth and narrowed it across sectors.

Keywords: current account, external investment position, Globalization, Switzerland

JEL Classification: F1, F4

Suggested Citation

Tille, Cedric, The Changing International Linkages of Switzerland: An Overview (July 2017). CEPR Discussion Paper No. DP12176. Available at SSRN: https://ssrn.com/abstract=3011374

Cedric Tille (Contact Author)

Graduate Institute of International and Development Studies (HEI) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

HOME PAGE: http://sites.google.com/site/cedrictilleheid/home

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