Forced Migration and Local Economic Development: Evidence from Postwar Hungary

Daniel Borbely and Ross Mckenzie
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Ross Mckenzie: Department of Economics, University of Strathclyde

No 2107, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: We investigate the persistent effects of forced migration on sending economies using the postWW2 expulsion of German minorities from Hungary as a natural experiment. We combine historical and contemporary data sources to show that, while towns heavily affected by the expulsions were quite similar to other areas in terms of economic activity and labour market composition before the war, the forced migrations led to lasting reductions in economic activity, and an increasing reliance on agricultural labour. We further show long-term negative correlations between forced migration and local trust levels, suggesting that the expulsion of Germans also affected the local social fabric. Our analysis reveals that forced migration can cause lasting regional inequalities in sending economies.

Keywords: forced migration; economic development; minorities; trust; persistence; regional inequality (search for similar items in EconPapers)
JEL-codes: N34 N94 O12 O15 R11 (search for similar items in EconPapers)
Pages: pages
Date: 2021-11
New Economics Papers: this item is included in nep-geo, nep-his, nep-mig, nep-tra and nep-ure
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Related works:
Journal Article: Forced migration and local economic development: Evidence from postwar Hungary (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:2107

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