Year: 2026
Type: article
Abstract: This article uses the creation of a paradigmatic multi-ethnic state, Yugoslavia, in 1918, and a novel large dataset of grain prices to examine the effect of ethnicity on trade costs when borders changed. Controlling for transport costs and import tariffs, we find a large but transitory border effect. Ethno-religious differences initially significantly increased price gaps, but their negative influence vanished over time as well. The decline was virtually complete about 16 years before unification and involved city-pairs divided by the border, supporting the hypothesis that Yugoslav unification nationalism fostered trust across ethno-religious networks of international traders.
Source: The Journal of Economic History
Authors: David Chilosi, Stefan Nikolić
Institutions: King's College London, Loughborough University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,550
OpenAlex ID: W7223149063