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A study case on the caveats in the measurement of FTAs effect on trade: Switzerland's free trade agreements

Timothy Nussbaumer ()

Aussenwirtschaft, 2017, vol. 68, issue 01, 139-167

Abstract: This paper analyses the effect of 20 of the 31 Swiss free trade agreements (FTAs) on Swiss trade flows, using disaggregated trade data for the period between 1993 and 2014. Applying the standard gravity model of trade, the impact of each individual FTA on Swiss exports and imports is estimated. Although the descriptive evidence suggests a positive impact of most FTAs, the estimation results at the disaggregated level are inconclusive. Taking Switzerland as a case study, this work points towards important methodological difficulties in the measurement of FTA effects on trade at the disaggregated level.

Date: 2017-12
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Handle: RePEc:usg:auswrt:2017:68:01:139-167