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Tariffs and Trees: The Effects of the Austro-Hungarian Customs Union on Specialization and Land-Use Change

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  • Alix-Garcia, Jennifer
  • Walker, Sarah
  • Radeloff, Volker
  • Kozak, Jacek

Abstract

This article examines the impact of the 1850 Austro-Hungarian customs union on production land-use outcomes. Using newly digitized data from the Second Military Survey of the Habsburg Monarchy, we apply a spatial discontinuity design to estimate the impact of trade liberalization on land use. We find that the customs union increased cropland area by 8 percent per year in Hungary between 1850 and 1855, while forestland area decreased by 6 percent. We provide suggestive evidence that this result is not confounded by the emancipation of the serfs, population growth, or technological change in agriculture.

Suggested Citation

  • Alix-Garcia, Jennifer & Walker, Sarah & Radeloff, Volker & Kozak, Jacek, 2018. "Tariffs and Trees: The Effects of the Austro-Hungarian Customs Union on Specialization and Land-Use Change," The Journal of Economic History, Cambridge University Press, vol. 78(4), pages 1142-1178, December.
    • Handle: RePEc:cup:jechis:v:78:y:2018:i:04:p:1142-1178_00
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    Cited by:

    1. Abman,Ryan Michael & Lundberg,Clark Christopher & Ruta,Michele, 2021. "The Effectiveness of Environmental Provisions in Regional Trade Agreements," Policy Research Working Paper Series 9601, The World Bank.
    2. Wuepper, David & Borrelli, Pasquale & Mueller, Daniel & Finger, Robert, 2020. "Quantifying the soil erosion legacy of the Soviet Union," Agricultural Systems, Elsevier, vol. 185(C).

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