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The Impact of Trade Liberalisation on Economic Growth in Switzerland

Author

Listed:
  • Khobai, Hlalefang
  • Chitauro, Mishaelight

Abstract

The objective of this study is to analyse the effect of trade liberalization on economic growth in Switzerland using annual data from 1990 to 2014. In doing so, the study incorporated Foreign Direct Investment (FDI) and the Employment Rate (EMP) as additional variable to form a multivariate framework. The Auto-Regressive Distributive Lag (ARDL) test was used to test the existence of a long run relationship among the variables. The empirical findings indicated that Trade Openness had a positive and significant effect on economic growth in Switzerland. Thus, the study recommend that there is a need for the country to put strong initiative on adding value on her exports so as to compensate for imports.

Suggested Citation

  • Khobai, Hlalefang & Chitauro, Mishaelight, 2018. "The Impact of Trade Liberalisation on Economic Growth in Switzerland," MPRA Paper 89884, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:89884
    as

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    File URL: https://mpra.ub.uni-muenchen.de/89884/1/MPRA_paper_89884.pdf
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    References listed on IDEAS

    as
    1. Hlalefang Khobai & Nwabisa Kolisi & Clement Moyo, 2018. "The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 77-82.
    2. Emeka Nkoro & Aham Kelvin Uko, 2016. "Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 5(4), pages 1-3.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. repec:taf:oaefxx:v:5:y:2017:i:1:p:1332820 is not listed on IDEAS
    5. Qazi Muhammad Adnan Hye & Wee-Yeap Lau, 2015. "Trade openness and economic growth: empirical evidence from India," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(1), pages 188-205, February.
    6. Hlalefang Khobai & Sanderson Abel & Pierre Le Roux, 2016. "Co-integration between Electricity Supply and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 637-645.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Trade liberalisation; Economic growth; Auto-regression Distribution Lag Model (ARDL); Co-integration; Switzerland;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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