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Strengthening economic resilience within global value chains in Switzerland

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  • Erik Frohm

Abstract

Switzerland has shown remarkable strength during past economic downturns. A comprehensive risk planning and monitoring system, as well as essential-goods stockpiles has effectively bridged temporary supply disruptions. Yet, rising geopolitical tensions and a global shift towards protectionism pose significant challenges for the Swiss economy. To raise its resilience and productivity, Switzerland should refrain from relying on distortive industrial policies or trade restrictions, and rather continue to commit to international trade and cooperation, strengthen ties with key trading partners and enhance domestic competition. Resuming negotiations with the EU is key to safeguard access to the single market and deepen the economic partnership. Reducing trade barriers and lowering the administrative burden could reduce trade costs, which would allow companies to diversify supply chains while raising productivity.

Suggested Citation

  • Erik Frohm, 2024. "Strengthening economic resilience within global value chains in Switzerland," OECD Economics Department Working Papers 1798, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1798-en
    DOI: 10.1787/a5d115a8-en
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    More about this item

    Keywords

    Competition; Economic Resilience; Global Value Chains; Industrial Policy; Trade;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets

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