The Sources and Magnitudes of Switzerland’s Gains from Trade
Christian Hepenstrick ()
Swiss Journal of Economics and Statistics, 2016, vol. 152, issue 1, 1-21
Summary This paper uses the modern workhorse model of quantitative trade theory (Eaton and Kortum, 2002) as a measurement tool to quantify Switzerland’s gains from trade. I find that individual trading partners matter surprisingly little for Switzerland’s welfare because of reallocation effects: if trade between Switzerland and some partner country is inhibited, other supplier countries step into the breach so that the losses are limited and typically amount to less than 1 %. The conclusions are different if one considers groups of countries such as for example the EU: participating in a multilateral 25 % trade cost reduction increases Swiss welfare by 11 % relative to the status quo. However, it must also be noted that in the case of non-participation, the actual welfare losses relative to the status quo are modest with less than 1 %.
Keywords: F10; F11; F14; Gains from trade; Switzerland; development accounting (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/BF03399420 Abstract (text/html)
Journal Article: The Sources and Magnitudes of Switzerland's Gains from Trade (2016)
Working Paper: The sources and magnitudes of Switzerland’s gains from trade (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:sjecst:v:152:y:2016:i:1:d:10.1007_bf03399420
Ordering information: This journal article can be ordered from
Access Statistics for this article
Swiss Journal of Economics and Statistics is currently edited by Rafael Lalive
More articles in Swiss Journal of Economics and Statistics from Springer, Swiss Society of Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().