Does Medieval Trade Still Matter? Historical Trade Centers, Agglomeration and Contemporary Economic Development

96 Pages Posted: 20 Sep 2014 Last revised: 19 Apr 2016

See all articles by Fabian Wahl

Fabian Wahl

University of Hohenheim - Department of Economics

Date Written: April 19, 2016

Abstract

This study establishes a link between medieval trade, agglomeration and contemporary regional development in ten European countries. It documents a statistically and economically significant positive relationship between prominent involvement in medieval trade and regional economic development today. The analysis indicates that a long-lasting effect of medieval trade on contemporary regional development is indeed transmitted via its effect on agglomeration and industry concentration. Further empirical analyses show that medieval trade positively influenced city development both during the medieval period and in the long run; they also reveal a robust connection between medieval city growth and contemporary regional agglomeration and industry concentration. This research thus highlights the long-run importance of medieval trade in shaping the development of cities as well as the contemporary spatial distribution of economic activity throughout Europe. The path-dependent regional development processes caused by medieval commercial activities help explain the observed persistent regional development differences across the European countries considered.

Keywords: Medieval Trade, Agglomeration, Regional Economic Development, Path-Dependency, New Economic Geography

JEL Classification: F14, N73, N93, O18, R12

Suggested Citation

Wahl, Fabian, Does Medieval Trade Still Matter? Historical Trade Centers, Agglomeration and Contemporary Economic Development (April 19, 2016). Available at SSRN: https://ssrn.com/abstract=2498046 or http://dx.doi.org/10.2139/ssrn.2498046

Fabian Wahl (Contact Author)

University of Hohenheim - Department of Economics ( email )

Wollgrasweg 49
Stuttgart, 70599
Germany
+49711-45924405 (Phone)

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