Self-Reinforcing Shocks: Evidence from a Resettlement Policy

Aki Kangasharju () and Matti Sarvimäki ()

SERC Discussion Papers from Centre for Economic Performance, LSE

Abstract: i. A completely revised version of this paper is available as SERCDP0080, May 2011. We examine the long-term effects of resettling 11 percent of the Finnish population from areas ceded to the Soviet Union during World War II. Our empirical strategy exploits features of the resettlement policy as a source of plausibly exogenous variation in population growth. The results suggest that a 10 percent increase in the population of a rural location during the war caused an additional 15 percent growth during the next five decades. The growth was driven by migration and led to the expansion of the non-primary sector. The effect is larger for locations connected to the railway network.

Keywords: Economic geography; agglomeration; migration (search for similar items in EconPapers)
JEL-codes: F12 J10 N94 R12 (search for similar items in EconPapers)
Date: 2010-04
New Economics Papers: this item is included in nep-his, nep-mig and nep-ure
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http://cep.lse.ac.uk/pubs/download/sercdp0047.pdf (application/pdf)

Related works:
Working Paper: Self-reinforcing shocks: evidence from a resettlement policy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:sercdp:0047

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