Arbeitspapier

The cost of remoteness revisited

Redding and Sturm (2008) use the German division as a natural experiment to study the importance of market access for regional development. They show empirically that cities close to the East-West German border experienced a significant decline in population growth due to division. I argue that their results are driven by the internal migration of refugees in the 1950s rather than the loss of market access. In fact, the treatment effect estimated by Redding and Sturm (2008) disappears completely once the refugee share in 1950 and boundary changes of sample cities are taken into account.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 2070

Classification
Wirtschaft
Economic Integration
Regional and Urban History: Europe: 1913-
Size and Spatial Distributions of Regional Economic Activity
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Subject
Market Access
Regional Growth
Internal Migration

Event
Geistige Schöpfung
(who)
Franke, Richard
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2017

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Franke, Richard
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2017

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