Template-Type: ReDIF-Paper 1.0
Author-Name: Daniel Borbely
Author-Name-First: Daniel
Author-Name-Last: Borbely
Author-Email: dborbely001@dundee.ac.uk
Author-Workplace-Name: University of Dundee
Author-Name: Ross Mckenzie
Author-Name-First: Ross
Author-Name-Last: Mckenzie
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: Forced Migration and Local Economic Development: Evidence from Postwar  Hungary
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.
Length:  pages
Creation-Date: 2021-11
Revision-Date: 
Publication-Status: 
File-URL: https://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/21-07_Forced_Migration_and_Local_Economic_Development__Evidence_from_Postwar_Hungary_WORKING_PAPER__2021112.pdf
File-Format: Application/pdf
Number: 2107
Classification-JEL: N34, N94, R11, O12, O15
Keywords: forced migration, economic development, minorities, trust, persistence, regional inequality
Handle: RePEc:str:wpaper:2107