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Trade Effects of Border Controls

Author

Listed:
  • Gabriel Felbermayr
  • Jasmin Katrin Gröschl
  • Thomas Steinwachs

Abstract

A new empirical analysis by the Ifo Institute shows that, even if the Schengen Area were to collapse completely, Germany’s annual GDP would only drop by between 4 billion and 11 billion euros; while the far more realistic reintroduction of controls on refugee routes would lead to negative effects of between 1 and 3 billion euros. For Austria losses would range between 80 and 210 million euros. However, these costs only account for a fraction of the financial burden that will arise if the mass inflows of immigrants continue unchecked.

Suggested Citation

  • Gabriel Felbermayr & Jasmin Katrin Gröschl & Thomas Steinwachs, 2016. "Trade Effects of Border Controls," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(05), pages 18-27, March.
    • Handle: RePEc:ces:ifosdt:v:69:y:2016:i:05:p:18-27
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Felbermayr & Jasmin Gröschl & Marina Steininger, 2022. "Quantifying Brexit: from ex post to ex ante using structural gravity," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(2), pages 401-465, May.
    2. Ireneusz Pawel Karolewski & Roland Benedikter, 2017. "Europe’s Refugee and Migrant Crisis: Economic and Political Ambivalences," Challenge, Taylor & Francis Journals, vol. 60(3), pages 294-320, May.
    3. Jason Poulos & Andrea Albanese & Andrea Mercatanti & Fan Li, 2021. "Retrospective causal inference via matrix completion, with an evaluation of the effect of European integration on cross-border employment," LISER Working Paper Series 2021-07, Luxembourg Institute of Socio-Economic Research (LISER).
    4. Gabriel Felbermayr & Jasmin Katrin Gröschl & Benjamin Jung & Gabriel J. Felbermayr, 2017. "Germany since the Fall of the Iron Curtain: The Real Income Effects of Growing Integration in the World Economy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(22), pages 30-37, November.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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