Trade and Urbanization: Evidence from Hungary

نویسندگان

چکیده

I study how trade affects urbanization and real income. To this end, exploit large-scale exogenous changes in stemming from the redrawing of Hungary’s borders after First World War. show that counties near new border decreased significantly relative to farther away. rationalize reduced-form finding a spatial model which benefits trading drive agglomeration around locations where activity takes place. Structurally estimating model, find 15.55 percent decrease Hungarian residents’ average income borders, with largest losses concentrated regions. (JEL F11, F14, N34, N74, N94, R12)

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ژورنال

عنوان ژورنال: American Economic Journal: Microeconomics

سال: 2022

ISSN: ['1945-7669', '1945-7685']

DOI: https://doi.org/10.1257/mic.20180270