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On the origins of border effects: insights from the Habsburg Empire
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Schulze, Max-Stephan and Wolf, Nikolaus. (2009) On the origins of border effects: insights from the Habsburg Empire. Journal of Economic Geography, Vol.9 (No.1). pp. 117-136. ISSN 1468-2702
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Official URL: http://dx.doi.org/10.1093/jeg/lbn040
Abstract
What are the origins of border effects on trade and why do borders continue to matter in periods of increasing economic integration We explore the hypothesis that border effects emerged as a result of asymmetric economic integration in the unique historical setting of the multi-national Habsburg Empire prior to the First World War. While markets tended to integrate mainly due to improved infrastructure, ethno-linguistic networks had persistent trade diverting effects. We find that the political borders which separated the empires successor states after the First World War became visible in the economy from the mid-1880s onwards, already 2530 years before the First World War. This effect of a border before a border cannot be explained by factors such as administrative barriers, physical geography, changes in infrastructure or patterns of integration with neighbouring regions outside of the Habsburg customs and monetary union. However, controlling for the changing ethno-linguistic composition of the population across the regional capital cities of the empire does explain most of the estimated border effects.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions G Geography. Anthropology. Recreation |
| Divisions: | Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation |
| Journal or Publication Title: | Journal of Economic Geography |
| Publisher: | Oxford University Press |
| ISSN: | 1468-2702 |
| Date: | January 2009 |
| Volume: | Vol.9 |
| Number: | No.1 |
| Number of Pages: | 20 |
| Page Range: | pp. 117-136 |
| Identification Number: | 10.1093/jeg/lbn040 |
| Status: | Peer Reviewed |
| Publication Status: | Published |
| Access rights to Published version: | Restricted or Subscription Access |
| Funder: | British Academy/Leverhulme Trust, Fritz Thyssen Foundation |
| Grant number: | Az.10.05.2.050 |
| URI: | http://wrap.warwick.ac.uk/id/eprint/28833 |
Data sourced from Thomson Reuters' Web of Knowledge
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