In this paper, we explore the long-run effects of cultural and imperial
legacies in the Baltic region. Drawing evidence from the 1897 population
census in the Russian Empire, we find that localities with a higher share of
German historical population are inclined to be more developed in contemporary
Latvia and Estonia. Furthermore, based on the Life-In-Transition Survey
(LiTS), we use robust regression discontinuity and identify persistent
differential patterns of socioeconomic and political preferences across the
borders of the former imperial territories of Estland, Livonia (Swedish
Livonia), Letgallia (Polish Livonia) and Courland. Hence, we argue for the
persistence of legacies as drivers of divergent development paths in the
regions of Latvia and Estonia
