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The bombing of Germany: The economic geography of war-induced dislocation in West German industry

Vonyó, T., Feb-2012, In : European Review of Economic History. 16, 1, p. 97-118 22 p.

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  • The bombing of Germany the economic geography of war-induced

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DOI

  • T. Vonyó

This paper reveals the impact of wartime destruction in urban housing on regional economic growth in West Germany between 1939 and 1950. I demonstrate econometrically that the German economy remained severely dislocated as long as the urban housing stock had not been rebuilt. The recovery of urban industry was constrained by a war-induced labour shortage and, therefore, industrial capacities remained underutilized. In contrast, the growth of the rural economy was facilitated by labour expansion, which depressed industrial labour productivity. I apply instrumental variables to account for endogeneity and robust regressions to adjust for the impact of outliers.

Original languageEnglish
Pages (from-to)97-118
Number of pages22
JournalEuropean Review of Economic History
Volume16
Issue number1
Publication statusPublished - Feb-2012

    Keywords

  • GROWTH, IMPACT

ID: 2220110