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Openness and productivity of the Swiss economy

Author

Listed:
  • Reto Föllmi

    (Universität St. Gallen)

  • Angela Fuest

    (Leibniz Institute for Economic Research)

  • Philipp an de Meulen

    (FOM Hochschule für Oekonomie & Management gGmbH)

  • Martin Micheli

    (Leibniz Institute for Economic Research)

  • Torsten Schmidt

    (Leibniz Institute for Economic Research)

  • Lina Zwick

    (Leibniz Institute for Economic Research)

Abstract

This paper analyzes the connection between openness and economic performance in Switzerland. Considering different dimensions of openness, we show that the Swiss economy is classified as relatively open. Nevertheless, there still is potential to further increase international integration, particularly through deregulation in the services sector. We also show that for some branches in the Swiss manufacturing sector, increases in international trade are associated with higher productivity in the long run. With regard to financial openness, we show that in the aftermath of the financial crisis, Switzerland mainly suffered from capital retrenchment. Foreign capital inflows were of minor importance. Short-run costs due to high volatility of capital flows might therefore be lower than widely perceived.

Suggested Citation

  • Reto Föllmi & Angela Fuest & Philipp an de Meulen & Martin Micheli & Torsten Schmidt & Lina Zwick, 2018. "Openness and productivity of the Swiss economy," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-21, December.
    • Handle: RePEc:spr:sjecst:v:154:y:2018:i:1:d:10.1186_s41937-018-0021-3
    DOI: 10.1186/s41937-018-0021-3
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    More about this item

    Keywords

    Productivity; Openness; Trade barriers;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F10 - International Economics - - Trade - - - General
    • F30 - International Economics - - International Finance - - - General

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