IDEAS home Printed from https://ideas.repec.org/a/ahe/invest/v12y2016i03p165-180.html
   My bibliography  Save this article

Too late but profitable: Railroads in Colombia during 1920–1950

Author

Listed:
  • Adolfo Meisel-Roca

    (Banco de la República, Carrera 7 # 14-78 Piso 6, Bogotá, Colombia)

  • María Teresa Ramírez-Giraldo

    (Banco de la República, Carrera 7 # 14-78 Piso 11, Bogotá, Colombia)

  • Juliana Jaramillo-Echeverri

    (Banco de la República, Carrera 7 # 14-78 Piso 6, Bogotá, Colombia)

Abstract

During the 1920s, the Colombian economy experienced the highest growth rate in its history. The economic reforms of 1923 (central bank, gold standard, banking legislation, fiscal reorganization), a coffee boom, and an unprecedented influx of foreign capital were the driving forces behind this success. The loans obtained by 1929 amounted to 257 million dollars. Those funds were used mainly to build much needed infrastructure, particularly railroads. In this paper, we estimate the rates of return of the investments made in Colombian railroads during the period 1924–1950. We consider that Colombia ended up paying only around 85% of the loans obtained in the 1920s, owing to the suspension of foreign debt payments; as a result, the profitability in the construction of railways was higher. The rates of return on the railroads constructed and extended in the 1920s are comparable to those obtained for European countries in the nineteenth century. KEY Classification-JEL: N26. N76. O16. O18

Suggested Citation

  • Adolfo Meisel-Roca & María Teresa Ramírez-Giraldo & Juliana Jaramillo-Echeverri, 2016. "Too late but profitable: Railroads in Colombia during 1920–1950," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 12(03), pages 165-180.
  • Handle: RePEc:ahe:invest:v:12:y:2016:i:03:p:165-180
    as

    Download full text from publisher

    File URL: https://recyt.fecyt.es/index.php/IHE/article/view/70754/42847
    Download Restriction: This is an Open Access journal
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Juan José Echavarría, 1982. "La deuda externa colombiana durante los 20s y los 30s. Algunas ensenanzas para el presente," Coyuntura Económica, Fedesarrollo, vol. 12(2), pages 85-119, July.
    2. Francisco José Ortega-Acosta & Adolfo Meisel-Roca & Jorge Enrique Ibánez-Nájar & Alejandro López-Mejía & Hernando José Gómez-Restrepo, 2023. "Banco de la República: antecedentes, evolución y estructura," Books, Banco de la Republica de Colombia, number 2023-isbn:9789586644488 edited by Mario Lombo-Vanegas & Rafael Isaza-Botero & Adolfo Meisel-Roca & Alejandro López-Mejía, December.
    3. Roberto Junguito & Hernán Rincón, 2004. "La Política Fiscal En El Siglo Xx En Colombia," Borradores de Economia 3052, Banco de la Republica.
    4. Summerhill, William R., 1996. "Railroads and the Brazilian Economy Before 1914," The Journal of Economic History, Cambridge University Press, vol. 56(2), pages 464-467, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2020. "The path to gender equality in Colombia: Are we there yet?," Borradores de Economia 1131, Banco de la Republica de Colombia.
    2. Gerardo della Paolera & Xavier H. Duran Amorocho & Aldo Musacchio, 2018. "The Industrialization of South America Revisited: Evidence from Argentina, Brazil, Chile and Colombia, 1890-2010," NBER Working Papers 24345, National Bureau of Economic Research, Inc.
    3. Maria Paula Saffon & Fabio Sánchez, 2019. "Historical grievances and war dynamics: Old land conflicts as a cause of current forced displacements in Colombia," Documentos CEDE 17320, Universidad de los Andes, Facultad de Economía, CEDE.
    4. Lucas Wilfried Hahn-De-Castro & Adolfo Meisel-Roca, 2018. "La desigualdad económica entre las regiones de Colombia, 1926-2016," Cuadernos de Historia Económica 16428, Banco de la República, Economía Regional.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edna Carolina Sastoque Ramírez, 2018. "El papel de los banqueros en la construcción de estado y soberanía monetaria en Colombia (1880-1931)," Books, Universidad Externado de Colombia, Facultad de Economía, number 78, February.
    2. Juan José Echavarría & Andrés González, 2012. "Choques internacionales reales y financieros y su impacto sobre la economía colombiana," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 30(69), pages 14-66, December.
    3. Clark Granger & Yurany Hernández & Jorge Ramos & Jorge Toro & Héctor Zárate, 2018. "La postura fiscal en Colombia a partir de los ajustes a las tarifas impositivas," Borradores de Economia 1038, Banco de la Republica de Colombia.
    4. Carlos Esteban Posada & Jorge Andrés Tamayo, 2008. "La transición hacia una economía urbana y el aumento del producto per cápita: el caso colombiano del siglo XX desde la perspectiva de Lucas," Borradores de Economia 5111, Banco de la Republica.
    5. Fernando, Estrada & Jorge Ivan, Gonzalez & Alberto, Castrillon & Mauricio, Perez, 2010. "Problemas fiscales y redistributivos en Colombia [Redistributive fiscal problems in Colombia]," MPRA Paper 20518, University Library of Munich, Germany.
    6. Pascual Amézquita Zárate, 2010. "Aspectos Económicos del Gobierno de Carlos Lleras Restrepo. (Colombia, 1966-1970)," Revista Civilizar 7346, Universidad Sergio Arboleda.
    7. Olivera, Mauricio & Pachón, Mónica & Perry, Guillermo, 2010. "The Political Economy of Fiscal Reform: The Case of Colombia, 1986-2006," IDB Publications (Working Papers) 1718, Inter-American Development Bank.
    8. Alejandro López-Vera & Andrés D. Pinchao-Rosero & Norberto Rodríguez-Niño, 2018. "Non-Linear Fiscal Multipliers for Public Expenditure and Tax Revenue in Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 36(85), pages 48-64, April.
    9. Luca Benati & Robert E. Lucas & Juan Pablo Nicolini & Warren E. Weber, 2017. "Online Appendix for: International Evidence on Long-Run Money Demand," Working Papers 738, Federal Reserve Bank of Minneapolis.
    10. Juan José Echavarría & Enrique López E. & Martha Misas A., 2008. "Desalineamiento de la tasa de cambio, destorcidas de cuenta corriente y ataques especulativos en Colombia," Coyuntura Económica, Fedesarrollo, December.
    11. Álvaro Díaz, Henry Laverde, John Jairo Gómez, 2011. "Política tributaria y sus efectos sobre la distribución del ingreso en Colombia durante el siglo XX," Revista CIFE, Universidad Santo Tomás, December.
    12. Meisel-Roca, Adolfo & Jaramillo-Echeverri, Juliana, 2017. "Las políticas del Banco de la República durante un auge entre dos crisis, 1930-1951," Chapters, in: Uribe, José Darío (ed.), Historia del Banco de la República 1923-2015, chapter 3, pages 85-119, Banco de la Republica de Colombia.
    13. Alejandro Ayuso‐Díaz & Antonio Tena‐Junguito, 2020. "Trade in the shadow of power: Japanese industrial exports in the interwar years," Economic History Review, Economic History Society, vol. 73(3), pages 815-843, August.
    14. Carmen M. Reinhart, 2010. "This Time is Different Chartbook: Country Histories on Debt, Default, and Financial Crises," NBER Working Papers 15815, National Bureau of Economic Research, Inc.
    15. Daron Acemoglu & Camilo García-Jimeno & James A. Robinson, 2015. "State Capacity and Economic Development: A Network Approach," American Economic Review, American Economic Association, vol. 105(8), pages 2364-2409, August.
    16. Hernán Vallejo, 2006. "El Tlc Andino En El Contexto De Colombia," Documentos CEDE 2556, Universidad de los Andes, Facultad de Economía, CEDE.
    17. Lucas Wilfried Hahn-De-Castro & Adolfo Meisel-Roca, 2018. "La desigualdad económica entre las regiones de Colombia, 1926-2016," Cuadernos de Historia Económica 47, Banco de la Republica de Colombia.
    18. Meisel-Roca, Adolfo, 2017. "Antecedentes del Banco de la República, 1904-1922," Chapters, in: Uribe, José Darío (ed.), Historia del Banco de la República 1923-2015, chapter 1, pages 1-23, Banco de la Republica de Colombia.
    19. Angela Milena Rojas, 2008. "Deuda pública interna, patrón metálico y guerras civiles: interconexiones institucionales, la Colombia del siglo XIX," Revista Lecturas de Economía, Universidad de Antioquia, CIE, April.
    20. Benati, Luca & Lucas, Robert E. & Nicolini, Juan Pablo & Weber, Warren, 2021. "International evidence on long-run money demand," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 43-63.

    More about this item

    Keywords

    Railroads. Rate of return. Investment. Foreign debt;

    JEL classification:

    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahe:invest:v:12:y:2016:i:03:p:165-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elena Garcia Cruz (email available below). General contact details of provider: https://edirc.repec.org/data/aeheeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.