Trade Liberalization and Growth: Plant-Level Evidence from Switzerland

Posted: 16 Mar 2020

See all articles by Stefan Buehler

Stefan Buehler

University of St. Gallen - SEPS: Economics and Political Sciences

Marco Helm

University of St. Gallen

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Date Written: 2011

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-in-differences 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.

Keywords: Trade liberalization, growth, plant size, policy evaluation

Suggested Citation

Buehler, Stefan and Helm, Marco and Lechner, Michael, Trade Liberalization and Growth: Plant-Level Evidence from Switzerland (2011). Available at SSRN: https://ssrn.com/abstract=3541693

Stefan Buehler (Contact Author)

University of St. Gallen - SEPS: Economics and Political Sciences ( email )

FGN-HSG
Varnbuelstr. 19
CH-9000 St. Gallen
Switzerland
+41-71-224-2303 (Phone)

Marco Helm

University of St. Gallen ( email )

Bodanstrasse 6
St. Gallen, 9000
Switzerland

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

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