Trade Liberalization and Growth: Plant-Level Evidence from Switzerland

Type
working paper
Date Issued
2011
Author(s)
;
Helm, Marco
;
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-in-differences 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.
Language
English
Keywords
Trade liberalization
growth
plant size
policy evaluation
HSG Classification
contribution to scientific community
Refereed
No
Publisher
University of St. Gallen
URL
Subject(s)

economics

Division(s)

SEPS - School of Econ...

SEW - Swiss Institute...

University of St.Gall...

FGN - Institute of Ec...

Eprints ID
183989
File(s)
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