Forced migration and local economic development: Evidence from postwar Hungary

Daniel Borbely (Lead / Corresponding author), Ross McKenzie

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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.

Original languageEnglish
Article number103355
Number of pages16
JournalJournal of Development Economics
Volume171
Early online date24 Aug 2024
DOIs
Publication statusPublished - Oct 2024

Keywords

  • Economic development
  • Forced migration
  • Minorities
  • Persistence
  • Regional inequality

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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