Border effects and urban structure

David Nagy ()

No 21, CeFiG Working Papers from Center for Firms in the Global Economy

Abstract: I propose a general model of economic geography to investigate the effect of border changes on the spatial distribution of population. I decompose the total effect into a standard "local effect" related to the change in distance from borders, and a novel "global effect" related to centrality before the border change. The global effect is especially strong in economies with a dominant central region that is home to a large fraction of the country's population. Conforming to this prediction, I show that the global effect played an important role in the population reallocation in Hungary after border changes in 1920.

Date: 2015-07-15, Revised 2015-07-15
New Economics Papers: this item is included in nep-geo and nep-ure
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