This paper uses the modern workhorse model of quantitative trade theory (Eaton and Kortum, 2002) as a measurement tool to quantify Switzerland's gains from trade. I find that individual trading partners matter surprisingly little for Switzerland's welfare because of reallocation effects: if...

In this paper I look at the size of Switzerland's gains from trade through the lens of the workhorse model of modern trade theory. The model finds that most of Switzerland's gains from trade originate from the EU and that realistic changes in the degree of trade integration with EU countries may...