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Forced migration and local economic development: Evidence from postwar Hungary

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  • Borbely, Daniel
  • Mckenzie, Ross

Abstract

We investigate the effects of forced migration on sending economies using the post-WW2 expulsion of German minorities from Hungary as a natural experiment. We combine historical and contemporary data sources to show that the forced migrations led to lasting reductions in economic activity. Plausible mechanisms driving this result appear to be sectoral change (shift towards agriculture) and skills differences between Germans and the settlers that replaced them. Our analysis reveals that forced migration can cause lasting regional inequalities in sending economies.

Suggested Citation

  • Borbely, Daniel & Mckenzie, Ross, 2024. "Forced migration and local economic development: Evidence from postwar Hungary," Journal of Development Economics, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:deveco:v:171:y:2024:i:c:s0304387824001044
    DOI: 10.1016/j.jdeveco.2024.103355
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    More about this item

    Keywords

    Forced migration; Economic development; Minorities; Persistence; Regional inequality;
    All these keywords.

    JEL classification:

    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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