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Switzerland's gains from trade with Europe

Christian Hepenstrick ()

Aussenwirtschaft, 2016, vol. 67, issue 03, 25-42

Abstract: In this paper I look at the size of Switzerland's gains from trade through the lens of the workhorse model of modern trade theory. The model finds that most of Switzerland's gains from trade originate from the EU and that realistic changes in the degree of trade integration with EU countries may have non-trivial - but at same time not excessively large - effects on Swiss percapita incomes. The model also suggests that further trade integration with third countries, such as China and India, tends to increase Swiss welfare, but is unlikely to be able to compensate for possible losses stemming from deteriorating trade relations with European countries.

Keywords: Gains from trade; Switzerland; Europe; Development accounting (search for similar items in EconPapers)
JEL-codes: F10 F11 F14 (search for similar items in EconPapers)
Date: 2016-12
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