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The Trade Effects of Border Controls: Evidence from the European Schengen Agreement

Listed author(s):
  • Gabriel Felbermayr

    ()

  • Jasmin Gröschl
  • Thomas Steinwachs

    ()

The Schengen agreement has guaranteed unchecked travel across internal EUborders since 1995. Has it also facilitated trade flows? Our econometric analysissuggests 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.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2016/wp-2016-213-felbermayr-groeschl-steinwachs-trade-effects-of-border-controls.pdf
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Paper provided by ifo Institute - Leibniz Institute for Economic Research at the University of Munich in its series ifo Working Paper Series with number Ifo Working Paper No. 213.

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Date of creation: 2016
Handle: RePEc:ces:ifowps:_213
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