From the sixteenth to the early nineteenth century, coastal areas of Italy (especially, in the south-west) were subject to attacks by pirates launched from the shores of Northern Africa. This paper documents that, in order to protect themselves, residents of coastal locations moved inland to mountainous and rugged areas. It also shows that such relocation constrained local economic development for a long period after the piracy threat had subsided. By hampering the growth of major urban centers, the attacks may have also had aggregate consequences on Italy’s post-WWII development.

JEL Classification: R1, N9, O1

Keywords: City size distribution; Historical shocks; Local development; Aggregate effects