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Trade Liberalization and Growth: Plant-Level Evidence from Switzerland

Stefan Bühler (), Marco Helm () and Michael Lechner
Authors registered in the RePEc Author Service: Stefan Buehler

No 1133, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science

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-indifferences 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 (search for similar items in EconPapers)
JEL-codes: C31 F13 F43 L25 O47 O52 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-08
New Economics Papers: this item is included in nep-fdg and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:usg:econwp:2011:33

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