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

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

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.

Suggested Citation

  • Gabriel Felbermayr & Jasmin Katrin Gröschl & Thomas Steinwachs, 2016. "The Trade Effects of Border Controls: Evidence from the European Schengen Agreement," ifo Working Paper Series 213, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_213
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-

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