Schulze M.-S. and Wolf N. (2009) Ethno-linguistic endogenous borders within the Habsburg Empire

April 22, 2009

Schulze, Max-Stephan and Wolf, Nikolaus (2009), “On the origin of border effects: insights from the Habsburg Empire”, Journal of Economic Geography, 9/1, 117-136.

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Introduction

While market integration typically depends on the level of technology and infrastructure, economists have shown that borders affect prices and trade flows (p.117). Administrative borders are strongly trade diverting but what about other types of borders such as the ethno-linguistic ones? The authors study the Austro-Hungarian Empire as it represents a rather unique example of multi-ethnic polity not divided by national borders (p.118). Read the rest of this entry »