b'Finland Joining the Schengen Area Lowers the Trade-Off between Growth and UnemploymentDaniela Reyes Escalona, Bryce Suggs and Sadie JohnsonSponsor: Dr. Cynthia Royal Tori, Department of Economics and FinanceWhile a member of the European Union since January 1, 1995, Finland made a significant step toward greater openness when it joined the Schengen Area on March 25, 2001. The Schengen Area is the worlds largest VISA free zone. Member countries agree to abolish border controls which allows the unrestricted flow of people between member countries and establish common rules for external borders. Schengen member countries also agree to ensure cooperation between police and the judicial systems of the member countries. Using data from Quarter 1 1990 through Quarter 3 2019 from Eurostat, this study examines whether becoming a member of the Schengen Area significantly changed Finlands long-run economic growth rate. The study also examines whether becoming a member of the Schengen Area significantly changed the statistical relationship between Finlands economic growth rate and the change of its unemployment rate. The results find that while joining the Schengen Area did not change Finlands long-run growth rate, it did significantly reduce the negative relationship between the growth rate and the unemployment rate change. Before joining the Schengen area, a 1% increase of the unemployment rate reduced Finlands growth rate by .72%. After joining the Schengen Area, a 1% increase of the unemployment rate reduced Finlands growth rate by 0.14%. Finlands long-run growth rate remained unchanged at 2.9%.59'