Switzerland and the European Economic Area: A General Equilibrium Assessment of Some Measures of Integration

In this article, the effects on the Swiss economy of some measures of integration such as a reduction in barriers to trade, a ban on cartels and an increase in labor mobility between Switzerland and the European Economic Area are assessed using an applied general equilibrium model. The analysis emphasizes the role of imperfect competition in the effects of reallocation between industrial sectors. The results show that some unilateral policies as well as membership to the EEA would have significant positive effects on GNP, income and welfare.