Forced migration and local economic development: Evidence from postwar Hungary

Daniel Borbely and Ross Mckenzie

Journal of Development Economics, 2024, vol. 171, issue C

Abstract: We investigate the effects of forced migration on sending economies using the post-WW2 expulsion of German minorities from Hungary as a natural experiment. We combine historical and contemporary data sources to show that the forced migrations led to lasting reductions in economic activity. Plausible mechanisms driving this result appear to be sectoral change (shift towards agriculture) and skills differences between Germans and the settlers that replaced them. Our analysis reveals that forced migration can cause lasting regional inequalities in sending economies.

Keywords: Forced migration; Economic development; Minorities; Persistence; Regional inequality (search for similar items in EconPapers)
JEL-codes: N34 N94 O12 O15 R11 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Working Paper: Forced Migration and Local Economic Development: Evidence from Postwar Hungary (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:171:y:2024:i:c:s0304387824001044

DOI: 10.1016/j.jdeveco.2024.103355

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