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When market access gains do not spur urban growth

Author

Listed:
  • Marius Klein
  • Ferdinand Rauch

Abstract

We revisit the natural experiments of division and unification of Germany. The negative shock to local market access following the division of Germany led to a fast and strong downward adjustment of the size of West German cities near the new border. In contrast, the positive shock of reunification did not lead to any change in their relative size. Even three decades after reunification, no convergence can be observed. We show that local subsidies to East Germany could have contributed to this asymmetry in time.

Suggested Citation

  • Marius Klein & Ferdinand Rauch, 2024. "When market access gains do not spur urban growth," Journal of Economic Geography, Oxford University Press, vol. 24(6), pages 907-919.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:6:p:907-919.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbae032
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    More about this item

    Keywords

    market access; iron curtain; German reunification;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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