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Geography and Space in Recent Economic History

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  • Wolf Nikolaus

    (Humboldt University Berlin, School of Business and Economics, Spandauer Strasse 1, 10178 Berlin, Germany)

Abstract

In this survey, I discuss the literature on historical economic geography that followed from both new economic geography (NEG) and the gravity model, with a focus on applications in economic history since 1991, especially in Europe and Germany. This discussion is organized around four themes: the starting point is the measurement of market potential and its components over the long-run. This includes attempts to estimate regional GDP, as well as changes in the accessibility of markets due to changing transportation costs, tariffs or political borders. Next, I discuss various attempts to measure the effect of market potential (or its components) on economic outcomes, that can be seen as direct empirical tests of NEG models. I also discuss several papers that try to identify the underlying microeconomic mechanism behind market potential, notably localized externalities, spillover effects, and the interplay between changes in transport infrastructure and structural change. Finally, I consider a literature which has examined the non-ergodicity implied by NEG theory, namely path dependence and multiple equilibria. I conclude with some suggestions for further research.

Suggested Citation

  • Wolf Nikolaus, 2025. "Geography and Space in Recent Economic History," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 66(2), pages 585-607.
    • Handle: RePEc:bpj:jbwige:v:66:y:2025:i:2:p:585-607:n:1011
    DOI: 10.1515/jbwg-2025-0021
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    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • N - Economic History
    • N - Economic History
    • F - International Economics
    • O - Economic Development, Innovation, Technological Change, and Growth

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