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IEB10-35_Bodenhorn+Cuberes.pdf (325.21 KB)

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Working paper

Publication date

2010

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cc-by-nc-nd, (c) Bodenhorn et al., 2010
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116766

Financial development and city growth: evidence from Northeastern American cities, 1790-1870

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Abstract

We find a positive and strong correlation between financial development and subsequent city growth in the Northeastern United States between 1790 and 1870. The correlation is robust to controls for geographical characteristics of the city, the percentatge of population working in different sectors, and its initial population. Our estimates suggest that the presence of a bank at a given location increases its subsequent growth by one to two percentage points per year. Because urban growth was correlated with econòmic development in the nineteenth-century US, we believe our results provide further suport for the finance-growth nexus.

Subject

Creixement econòmic, Ciutats, Població

Subject (English)

Economic growth, Cities and towns, Population

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IEB (Institut d’Economia de Barcelona) – Working Papers

Citation

BODENHORN, Howard and CUBERES, David. Financial development and city growth: evidence from Northeastern American cities, 1790-1870. IEB Working Paper 2010/35. [consulted: 13 of August of 2026]. Available at: https://hdl.handle.net/2445/116766

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