Article in Journal
Trade Effects of Border Controls
Gabriel Felbermayr, Jasmin Katrin Gröschl, Thomas Steinwachs
ifo Institut, München, 2016
ifo Schnelldienst, 2016, 69, Nr. 05, 18-27
ifo Institut, München, 2016
ifo Schnelldienst, 2016, 69, Nr. 05, 18-27
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.
JEL Classification: F130, F530