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Railroad expansion and entrepreneurship: evidence from Meiji Japan

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  • John Tang

Abstract

Railroads in Meiji Japan are credited with facilitating factor mobility as well as access to human and financial capital, but the impact on firms is unclear. Using a newly developed firm-level dataset and a difference-in-differences model that exploits the temporal and spatial variation of railroad expansion, I assess the relationship between railways and firm activity across Japan. Results indicate that railroad expansion corresponded with increased firm activity, particularly in manufacturing, although this effect is mitigated in less populous regions. These findings are consistent with industrial agglomeration in areas with larger markets and earlier development among both new and existing establishments.

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File URL: http://cbe.anu.edu.au/research/papers/cehdpapers/DP011.pdf
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Bibliographic Info

Paper provided by Centre for Economic History, Research School of Economics, Australian National University in its series CEH Discussion Papers with number 011.

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Date of creation: Jan 2013
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Handle: RePEc:auu:hpaper:011

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Keywords: agglomeration; entrepreneurship; firm genealogy; late development;

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