The costs of remoteness
Subtitle: evidence from German division and reunification
By: Stephen Redding and Daniel M. Sturm.
Contributors: Sturm, Daniel M.; London School of Economics and Political Science. Centre for Economic Performance.
Series: CEP discussion paper ;; no. 688; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 688.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2005
Place of publication: London
Language: eng
Format: Electronic resource
Description: This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find that following division cities in West Germany that were close to the new border between East and West Germany experienced a substantial decline in population growth relative to other West German cities. We provide several pieces of evidence that the decline of the border cities can be entirely accounted for by their loss in market access and is neither driven by differences in industrial structure nor differences in the degree of war related destruction. Finally, we also find some first evidence of a recovery of the border cities after the re-unification of East and West Germany.
Notes: Includes bibliographical references.
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"May 2005."
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