The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Default user image.

Anna Missiaia

Visiting research fellow

Default user image.

The fall and rise of business cycle co-movements in Imperial Austria's regions

Author

  • Anna Missiaia
  • Carlo Ciccarelli

Summary, in English

his paper investigates regional business cycle co-movements in Austria–Hungary from 1867 to 1913. Economic theory suggests that rising market integration induces sectoral specialisation, resulting in a reduction in the correlation of regional GDP cycles (Krugman effect). However, the synchronisation of business cycles is expected to increase because of the growing inter-linkages among regions led by the adoption of common currency and common economic policies (Frankel and Rose effect). We show that in the case of nineteenth-century Austria–Hungary the specialisation effect, most likely amplified by the stock market crisis of 1873, prevailed during 1867–1890, while the common currency/policy effect prevailed during 1890–1913, when the gold standard was adopted in both Austria and Hungary. However, core and peripheral regions contributed differently to the correlation of business fluctuations.

Department/s

  • Department of Economic History

Publishing year

2018-01

Language

English

Pages

171-193

Publication/Series

Annals of Regional Science

Volume

60

Issue

1

Document type

Journal article

Publisher

Springer

Topic

  • Economic History

Status

Published

ISBN/ISSN/Other

  • ISSN: 1432-0592