The Impact of Trade Liberalisation on Economic Growth in Switzerland

Hlalefang Khobai and Mishaelight Chitauro

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this study is to analyse the effect of trade liberalization on economic growth in Switzerland using annual data from 1990 to 2014. In doing so, the study incorporated Foreign Direct Investment (FDI) and the Employment Rate (EMP) as additional variable to form a multivariate framework. The Auto-Regressive Distributive Lag (ARDL) test was used to test the existence of a long run relationship among the variables. The empirical findings indicated that Trade Openness had a positive and significant effect on economic growth in Switzerland. Thus, the study recommend that there is a need for the country to put strong initiative on adding value on her exports so as to compensate for imports.

Keywords: Trade liberalisation; Economic growth; Auto-regression Distribution Lag Model (ARDL); Co-integration; Switzerland (search for similar items in EconPapers)
JEL-codes: C1 F1 F10 F13 (search for similar items in EconPapers)
Date: 2018-11-07
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89884

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