IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v94y2022ics0166046220303112.html
   My bibliography  Save this article

Infrastructure and institutions: Lessons from history

Author

Listed:
  • Bogart, Dan

Abstract

Many studies quantify the effects of infrastructures on economic welfare in the past with the aim of informing policy makers today. A different group of historical studies examines how infrastructures came about and how they were financed. These latter studies often highlight the role of the franchise and democracy. In this essay, I review historical studies on infrastructure and institutions, especially formal political constraints. One consistent finding is that policies to fund and place infrastructure in locations largely reflect the aims of those in power or with greater political influence. This illustrates one of the channels by which political institutions ultimately affect economic development. History offers a range of lessons, more of which can be uncovered through future research.

Suggested Citation

  • Bogart, Dan, 2022. "Infrastructure and institutions: Lessons from history," Regional Science and Urban Economics, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:regeco:v:94:y:2022:i:c:s0166046220303112
    DOI: 10.1016/j.regsciurbeco.2020.103626
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166046220303112
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.regsciurbeco.2020.103626?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Werner Troesken, 2004. "Water, Race, and Disease," NBER Books, National Bureau of Economic Research, Inc, number troe04-1, March.
    2. Coyle, Christopher & Turner, John D., 2013. "Law, Politics, and Financial Development: The Great Reversal of the U.K. Corporate Debt Market," The Journal of Economic History, Cambridge University Press, vol. 73(3), pages 810-846, September.
    3. Chaudhary, Latika & Musacchio, Aldo & Nafziger, Steven & Yan, Se, 2012. "Big BRICs, weak foundations: The beginning of public elementary education in Brazil, Russia, India, and China," Explorations in Economic History, Elsevier, vol. 49(2), pages 221-240.
    4. Andrei Shleifer & Florencio Lopez-de-Silanes & Rafael La Porta, 2008. "The Economic Consequences of Legal Origins," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 285-332, June.
    5. Tang, John P., 2014. "Railroad Expansion and Industrialization: Evidence from Meiji Japan," The Journal of Economic History, Cambridge University Press, vol. 74(3), pages 863-886, September.
    6. Dave Donaldson, 2018. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," American Economic Review, American Economic Association, vol. 108(4-5), pages 899-934, April.
    7. Erik Hornung, 2015. "Railroads And Growth In Prussia," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 699-736, August.
    8. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    9. Era Dabla-Norris & Jim Brumby & Annette Kyobe & Zac Mills & Chris Papageorgiou, 2012. "Investing in public investment: an index of public investment efficiency," Journal of Economic Growth, Springer, vol. 17(3), pages 235-266, September.
    10. Alston,Eric & Alston,Lee J. & Mueller,Bernardo & Nonnenmacher,Tomas, 2018. "Institutional and Organizational Analysis," Cambridge Books, Cambridge University Press, number 9781107451254.
    11. Eichengreen, Barry, 1995. "Financing Infrastructure in Developing Countries: Lessons from the Railway Age," The World Bank Research Observer, World Bank, vol. 10(1), pages 75-91, February.
    12. Remi Jedwab & Edward Kerby & Alexander Moradi, 2017. "History, Path Dependence and Development: Evidence from Colonial Railways, Settlers and Cities in Kenya," Economic Journal, Royal Economic Society, vol. 127(603), pages 1467-1494, August.
    13. Brian Knight, 2008. "Legislative Representation, Bargaining Power and the Distribution of Federal Funds: Evidence from the US Congress," Economic Journal, Royal Economic Society, vol. 118(532), pages 1785-1803, October.
    14. Robin Burgess & Remi Jedwab & Edward Miguel & Ameet Morjaria & Gerard Padró i Miquel, 2015. "The Value of Democracy: Evidence from Road Building in Kenya," American Economic Review, American Economic Association, vol. 105(6), pages 1817-1851, June.
    15. Djankov, Simeon & Glaeser, Edward & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2003. "The new comparative economics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 595-619, December.
    16. Chaudhary, Latika, 2009. "Determinants of Primary Schooling in British India," The Journal of Economic History, Cambridge University Press, vol. 69(1), pages 269-302, March.
    17. Kesztenbaum, Lionel & Rosenthal, Jean-Laurent, 2017. "Sewers’ diffusion and the decline of mortality: The case of Paris, 1880–1914," Journal of Urban Economics, Elsevier, vol. 98(C), pages 174-186.
    18. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    19. Troesken, Werner, 2002. "The Limits Of Jim Crow: Race And The Provision Of Water And Sewerage Services In American Cities, 1880–1925," The Journal of Economic History, Cambridge University Press, vol. 62(3), pages 734-772, September.
    20. David Albouy, 2013. "Partisan Representation in Congress and the Geographic Distribution of Federal Funds," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 127-141, March.
    21. Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
    22. Konstantin Büchel & Stephan Kyburz, 2020. "Fast track to growth? Railway access, population growth and local displacement in 19th century Switzerland," Journal of Economic Geography, Oxford University Press, vol. 20(1), pages 155-195.
    23. Bogart, Dan, 2010. "A global perspective on railway inefficiency and the rise of state ownership, 1880-1912," Explorations in Economic History, Elsevier, vol. 47(2), pages 158-178, April.
    24. Musacchio,Aldo, 2015. "Experiments in Financial Democracy," Cambridge Books, Cambridge University Press, number 9781107514782.
    25. Antonio Estache, 2016. "Institutions for Infrastructure in Developing Countries: What We Know and the Lot We still Need to Know," Working Papers ECARES ECARES 2016-27, ULB -- Universite Libre de Bruxelles.
    26. J. Luis Guasch & Jean-Jacques Laffont & Stéphane Straub, 2007. "Concessions of infrastructure in Latin America: Government-led renegotiation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1267-1294.
    27. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    28. Marcella Alsan & Claudia Goldin, 2019. "Watersheds in Child Mortality: The Role of Effective Water and Sewerage Infrastructure, 1880–1920," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 586-638.
    29. Curto-Grau, Marta & Herranz-Loncã N, Alfonso & Solã‰-Ollã‰, Albert, 2012. "Pork-Barrel Politics in Semi-Democracies: The Spanish “Parliamentary Roads,†1880–1914," The Journal of Economic History, Cambridge University Press, vol. 72(3), pages 771-796, August.
    30. Alex Trew, 2012. "Contracting Institutions and Development," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    31. Musacchio, Aldo & Fritscher, André Martínez & Viarengo, Martina, 2014. "Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889–1930," The Journal of Economic History, Cambridge University Press, vol. 74(3), pages 730-766, September.
    32. Eric Hilt, 2014. "History of American Corporate Governance: Law, Institutions, and Politics," Annual Review of Financial Economics, Annual Reviews, vol. 6(1), pages 1-21, December.
    33. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    34. Vincent Bignon & Rui Esteves & Alfonso Herranz-Loncán, 2015. "Big push or big grab? Railways, government activism, and export growth in Latin America, 1865–1913," Economic History Review, Economic History Society, vol. 68(4), pages 1277-1305, November.
    35. Bogart, Dan, 2009. "Nationalizations and the Development of Transport Systems: Cross-Country Evidence from Railroad Networks, 1860–1912," The Journal of Economic History, Cambridge University Press, vol. 69(1), pages 202-237, March.
    36. Philip Keefer & Stephen Knack, 2007. "Boondoggles, Rent-Seeking, and Political Checks and Balances: Public Investment under Unaccountable Governments," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 566-572, August.
    37. Zimran, Ariell, 2020. "Transportation and Health in the Antebellum United States, 1820–1847," The Journal of Economic History, Cambridge University Press, vol. 80(3), pages 670-709, September.
    38. Dincecco, Mark, 2015. "The Rise of Effective States in Europe," The Journal of Economic History, Cambridge University Press, vol. 75(3), pages 901-918, September.
    39. Tang, John P., 2017. "The Engine And The Reaper: Industrialization And Mortality In Late Nineteenth Century Japan," Journal of Health Economics, Elsevier, vol. 56(C), pages 145-162.
    40. Johnson, Noel D. & Koyama, Mark, 2017. "States and economic growth: Capacity and constraints," Explorations in Economic History, Elsevier, vol. 64(C), pages 1-20.
    41. Chapman, Jonathan, 2018. "Democratic Reform and Opposition to Government Expenditure: Evidence from Nineteenth-Century Britain," Quarterly Journal of Political Science, now publishers, vol. 13(4), pages 363-404, October.
    42. Laffont,Jean-Jacques, 2005. "Regulation and Development," Cambridge Books, Cambridge University Press, number 9780521840187.
    43. Rosenthal,Jean-Laurent, 2009. "The Fruits of Revolution," Cambridge Books, Cambridge University Press, number 9780521103121.
    44. Knight, Brian, 2004. "Parochial interests and the centralized provision of local public goods: evidence from congressional voting on transportation projects," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 845-866, March.
    45. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995.
    46. Dan Bogart, 2018. "Party Connections, Interest Groups and the Slow Diffusion of Infrastructure: Evidence from Britain's First Transport Revolution," Economic Journal, Royal Economic Society, vol. 128(609), pages 541-575, March.
    47. Berger, Thor & Enflo, Kerstin, 2017. "Locomotives of local growth: The short- and long-term impact of railroads in Sweden," Journal of Urban Economics, Elsevier, vol. 98(C), pages 124-138.
    48. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    49. Naomi R. Lamoreaux, 2005. "Legal Regime and Contractual Flexibility: A Comparison of Business's Organizational Choices in France and the United States during the Era of Industrialization," American Law and Economics Review, American Law and Economics Association, vol. 7(1), pages 28-61.
    50. Dan Bogart & Latika Chaudhary, 2012. "Regulation, Ownership, and Costs: A Historical Perspective from Indian Railways," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 28-57, February.
    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. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).

    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. Roberto Bonfatti & Giovanni Facchini & Alexander Tarasov & Gian Luca Tedeschi & Cecilia Testa, 2021. "Pork, infrastructure and growth: Evidence from the Italian railway expansion," Discussion Papers 2021-04, Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP).
    2. Berger, Thor, 2019. "Railroads and Rural Industrialization: evidence from a Historical Policy Experiment," Explorations in Economic History, Elsevier, vol. 74(C).
    3. Braunfels, Elias, 2016. "Further Unbundling Institutions," Discussion Paper Series in Economics 13/2016, Norwegian School of Economics, Department of Economics.
    4. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Aldashev, Gani & Zanarone, Giorgio, 2017. "Endogenous enforcement institutions," Journal of Development Economics, Elsevier, vol. 128(C), pages 49-64.
    6. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    7. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part I. Institutions and Economic Devel," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 12-38.
    8. Markus Reischmann, 2016. "Empirical Studies on Public Debt and Fiscal Transfers," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 63.
    9. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055.
    10. Aguirre, Alvaro, 2016. "The risk of civil conflicts as a determinant of political institutions," European Journal of Political Economy, Elsevier, vol. 42(C), pages 36-59.
    11. Jamie Bologna Pavlik & Andrew T. Young, 2020. "Medieval European traditions in representation and state capacity today," Economics of Governance, Springer, vol. 21(2), pages 133-186, June.
    12. Congdon Fors, Heather & Olsson, Ola, 2007. "Endogenous institutional change after independence," European Economic Review, Elsevier, vol. 51(8), pages 1896-1921, November.
    13. Johnson, Noel D. & Koyama, Mark, 2017. "States and economic growth: Capacity and constraints," Explorations in Economic History, Elsevier, vol. 64(C), pages 1-20.
    14. Antonio Estache, 2016. "Institutions for Infrastructure in Developing Countries: What We Know and the Lot We still Need to Know," Working Papers ECARES ECARES 2016-27, ULB -- Universite Libre de Bruxelles.
    15. Czeglédi, Pál, 2009. "A tulajdonjogi biztonság szerepe a technológia elterjedésében [The role of property-law security in the spread of technology]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 790-813.
    16. Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016. "Do politicians reward core supporters? Evidence from a discretionary grant program," European Journal of Political Economy, Elsevier, vol. 45(C), pages 39-56.
    17. Ahmad, Zofia & Chicoine, Luke, 2021. "Silk Roads to Riches: Persistence Along an Ancient Trade Network," MPRA Paper 105146, University Library of Munich, Germany.
    18. Fenske, James & Kala, Namrata & Wei, Jinlin, 2023. "Railways and cities in India," Journal of Development Economics, Elsevier, vol. 161(C).
    19. Kauder, Björn & Björn, Kauder & Niklas, Potrafke & Markus, Reischmann, 2016. "Do politicians gratify core supporters? Evidence from a discretionary grant program," VfS Annual Conference 2016 (Augsburg): Demographic Change 145509, Verein für Socialpolitik / German Economic Association.
    20. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).

    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:eee:regeco:v:94:y:2022:i:c:s0166046220303112. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    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.