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National Borders and Urban Growth: Evidence from the Annexation of Alsace and Lorraine

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  • Iakov T. Kuga

    (National Research University Higher School of Economics)

Abstract

According to the Treaty of Frankfurt (1871) France lost Alsace and Lorraine. In the paper I estimate how the new border affected a growth of nearby towns. Applying difference-in-differences methodology to census data for 1831-1911, I obtain paradoxical result. The new border boosted the growth of nearby towns. Extra urban growth in a 70 km border region reached 4.23 per cent p.a. in 1872-6, and was smaller, but still significantly positive, later. Point estimate of the total border effect in 1872-1911 is 134 per cent. This effect survives in more homogeneous subsamples and is robust to a number of specification changes. Both immigration of Alsatians, garrison growth and fort construction have sizable and significant positive effect on urban growth; however, the border effect remains significantly positive after accounting for these factors

Suggested Citation

  • Iakov T. Kuga, 2016. "National Borders and Urban Growth: Evidence from the Annexation of Alsace and Lorraine," HSE Working papers WP BRP 133/EC/2016, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:133/ec/2016
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    References listed on IDEAS

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    More about this item

    Keywords

    market potential; population; France; Alsace; Lorraine; difference-in-differences.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913

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