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The Economic Legacy of Warfare: Evidence from European Regions

Author

Listed:
  • Traviss Cassidy

    (University of Michigan)

  • Mark Dincecco

    (University of Michigan)

  • Massimiliano Gaetano Onorato

    (IMT School for Advanced Studies Lucca)

Abstract

Historical warfare in Europe inflicted numerous costs on rural populations. To reduce such costs, rural populations relocated behind the relative safety of urban fortifications. We argue that war-related urbanization had positive consequences for long-run regional economic development. We geocode the locations of more than 600 conflicts in early modern Europe. We find a positive and significant relationship between historical conflict exposure and regional economic development today. Our results are robust to a wide range of econometric techniques, alternative samples, and economic outcomes. Human capital accumulation stands out as one channel through which war-related urbanization translated into regional economic development. Our results highlight the military origins of European wealthy urban belt.

Suggested Citation

  • Traviss Cassidy & Mark Dincecco & Massimiliano Gaetano Onorato, 2015. "The Economic Legacy of Warfare: Evidence from European Regions," Working Papers 6/2015, IMT School for Advanced Studies Lucca, revised Jul 2015.
    • Handle: RePEc:ial:wpaper:6/2015
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    More about this item

    Keywords

    Warfare; Cities; Political and Economic Development; Europe;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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