Jean-Marie Grether has been a professor of international economics at the University of Neuchâtel since 2000. He served as dean of the Faculty of Economics from 2009 to 2011 and again from 2013 to 2015. He has served as vice-rector of the university since January 2017. He has taught in Europe, Mexico, and Argentina. He earned his Ph.D. from the University of Geneva in 1995. His research interests include trade policy (political economy, impacts on competitiveness), international migration, inequality, development, and the environment.

Until the 2019 data, cantonal statistics were compiled based on the postal code (NPA) provided by the company in the customs declaration. The method has changed. An interview with Jean-Marie Grether to better understand this change and its implications.

The method used to calculate Switzerland's foreign trade, broken down by canton, has been changed. What are your thoughts on this?

Through 2019, cantonal statistics were compiled based on the postal code (NPA) provided by the company in the customs declaration. Using the sender’s and recipient’s postal codes, exports and imports were then broken down by canton.
To produce more reliable data, a new method now uses the exporter’s address rather than the sender’s (and similarly for imports). This method cross-references data from customs declarations with data from the Register of Companies and Establishments (REE) using the company identification number (IDE). The revised data are therefore more accurate.

Neuchâtel is Switzerland's second-largest exporting canton. What does that mean, exactly?

The canton of Neuchâtel has a trade surplus, with CHF 22 billion in exports and CHF 5 billion in imports (excluding precious metals). This indicates that its industrial base is internationally competitive.
It is worth noting that the trade balance is calculated as exports minus imports. When expressed on a per-capita basis, it stands at 95,665 francs in the canton of Neuchâtel. The Swiss average does not exceed 4,500 francs per capita. The canton thus contributes significantly to Switzerland’s trade surplus.

However, there is no direct link between per capita exports and per capita income. Even though exports contribute to the creation of local value added, that value may be used to compensate capital and labor located outside the canton.

Compared to the rest of Switzerland, we can say that Neuchâtel is one of the most open cantons in the country. In fact, according to the following calculation:

  • (exports + imports of the canton) / (total exports + imports of Switzerland), or (22 + 5) / (242 + 205) = 0.06, or 6%,

International economic activity is three times greater than what the population of Neuchâtel accounts for—namely, 2% of Switzerland’s population.
The downside of this openness is that the canton’s economy is highly sensitive to international economic conditions and exchange rates.

What do you think of the level of industrial diversification in the canton?

An interesting diversification has taken place in recent years, particularly in the chemical and pharmaceutical industries. In my opinion, this diversification is essential to the canton’s industrial vitality.

Explanations from the FSO

New Method – Swiss Foreign Trade Broken Down by Canton

Business Identification Number
According to the Federal Statistical Office (FSO), the Business and Establishment Register (BER) includes all businesses and establishments—both private and public—that are established and conduct economic activity within Swiss territory. The REE integrates data from various sources, thereby enabling the collection of detailed information on enterprises and establishments, such as their address and the number of jobs.
The REE is based on a data model developed by the FSO in accordance with EUROSTAT recommendations. Each enterprise registered in the commercial register receives a unique nine-digit Enterprise Identification Number (EIN) and is referred to as a “legal unit.” Each main legal unit operates an enterprise. This enterprise carries out its activities in various local units (or establishments). A main legal unit may therefore comprise several establishments located in different cantons. A branch legal unit corresponds to a local unit registered in the commercial register.
The FSO uses the IDE to produce various business statistics. In addition to the FSO, EUROSTAT requires a business number for the production of foreign trade statistics by business characteristics. The IDE therefore serves as a relevant basis for producing cantonal foreign trade statistics.
The data provided by each enterprise in its customs declaration includes the enterprise identification number. Using this number, it is possible to cross-reference data from the Register of Enterprises and Establishments with customs data.