Nagy, David Krisztián2025-10-172025-10-172022Nagy DK. Trade and urbanization: evidence from Hungary?. Am Econ J Microecon. 2022;14(3):733-90. DOI: 10.1257/mic.201802701945-7669http://hdl.handle.net/10230/71535I study how trade affects urbanization and real income. To this end, I exploit large-scale exogenous changes in trade stemming from the redrawing of Hungary's borders after the First World War. I show that urbanization in counties near the new border decreased significantly relative to counties farther away. I rationalize this reduced-form finding in a spatial model in which benefits from trading drive agglomeration around locations where trading activity takes place. Structurally estimating the model, I find a 15.55 percent decrease in Hungarian residents' average real income after the redrawing of borders, with the largest losses concentrated in border regions.application/pdfeng© American Economic Association. Can be found at https://doi.org/10.1257/mic.20180270Comerç internacionalDesenvolupament urbàHongria -- Condicions econòmiquesinfo:eu-repo/semantics/article2025-10-17http://dx.doi.org/10.1257/mic.20180270info:eu-repo/semantics/openAccess