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Openness and Productitvity of the Swiss Economy

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  • Föllmi, Reto

    ()

  • Fuest, Angela
  • an de Meulen, Philipp
  • Micheli, Martin
  • Schmidt, Thorsten
  • Zwick, Lisa

Abstract

This paper analyzes the connection between openness and economic performance in Switzerland. Considering different dimensions of openness, we show that the Swiss economy classifies 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 the high volatility of capital flows might therefore be lower than widely perceived.

Suggested Citation

  • Föllmi, Reto & Fuest, Angela & an de Meulen, Philipp & Micheli, Martin & Schmidt, Thorsten & Zwick, Lisa, 2018. "Openness and Productitvity of the Swiss Economy," Economics Working Paper Series 1803, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2018:03
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    2. Ho, Calvin K. & McAuley, Kimberley B. & Peppley, Brant A., 2019. "Biolubricants through renewable hydrocarbons: A perspective for new opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    3. Baldi, Guido & Pons, Martina, 2019. "The Evolution of Factor Shares: Evidence from Switzerland," GLO Discussion Paper Series 324, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Productivity; Openness; Trade Barriers;

    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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