Bring Together What Belongs Together. The Case of Divided Cities in Europe
Do spatial concentrations of economic activities have deep historical roots in Europe? This paper explores a unique quasi-natural experiment of opening borders within cities that were historically a single urban entity and were divided due to border shifts following major historical conflicts. After inter-city borders were opened, I find that local economic activities, measured by remotely sensed nightlight, became more concentrated close to the pre-division city centers. This raises an important question, what type of border opening is more important in spurring agglomeration, the free movement of goods or of people?