The Trade Effects of Border Controls

Felbermayr, Gabriel; Gröschl, Jasmin Katrin und Steinwachs, Thomas (April 2016): The Trade Effects of Border Controls. Evidence from the European Schengen Agreement. Ifo Working Paper No. 213,

Abstract

The Schengen agreement has guaranteed unchecked travel across internal EU borders since 1995. Has it also facilitated trade flows? Our econometric analysis suggests that Schengen has boosted trade by 3% on average (equivalent to a drop in tariffs by 0.7 percentage points). Goods trade is more robustly affected than services, and peripheral countries benefit more than central ones.

• Item Type: Paper
• Keywords: Trade Integration; Schengen Agreement; Gravity
• Faculties: Economics > Chairs
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: F10, F15, N74, N94
• Language: English