Capital Destruction and Economic Growth: The Effects of Sherman's March, 1850–1920
- (pp. 301-42)
Abstract
Using General Sherman's March through Georgia, South Carolina, and North Carolina during the Civil War, we study the effect of capital destruction on medium- and long-run local economic activity, and the role of financial markets in recovery. We show that the march's capital destruction led to a large contraction in agricultural investment, farming asset prices, and manufacturing activity compared to neighboring counties. Elements of the decline in agriculture persisted through 1920. Exploiting variation in local access to antebellum credit, we argue that the underdevelopment of financial markets played a role in weakening the recovery.Citation
Feigenbaum, James, James Lee, and Filippo Mezzanotti. 2022. "Capital Destruction and Economic Growth: The Effects of Sherman's March, 1850–1920." American Economic Journal: Applied Economics, 14 (4): 301-42. DOI: 10.1257/app.20200397Additional Materials
JEL Classification
- N21 Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913
- N51 Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: U.S.; Canada: Pre-1913
- N52 Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: U.S.; Canada: 1913-
- N61 Economic History: Manufacturing and Construction: U.S.; Canada: Pre-1913
- N91 Regional and Urban History: U.S.; Canada: Pre-1913
- N92 Regional and Urban History: U.S.; Canada: 1913-
- Q10 Agriculture: General
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