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Trade Liberalization and Growth: Plant-Level Evidence from Switzerland

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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.
   
type working paper (English)
   
keywords Trade liberalization, growth, plant size, policy evaluation
   
date of appearance 2011
publisher University of St. Gallen
review not reviewed
   
citation Bühler, S., Helm, M., & Lechner, M. (2011). Trade Liberalization and Growth: Plant-Level Evidence from Switzerland: University of St. Gallen.