Felbermayr, Gabriel Gröschl, Jasmin Steinwachs, Thomas
Year of Publication:
Ifo Working Paper 213
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.