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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.

Suggested Citation

  • John Tang, 2013. "Railroad expansion and entrepreneurship: evidence from Meiji Japan," CEH Discussion Papers 011, Centre for Economic History, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:hpaper:011
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    File URL: https://cbe.anu.edu.au/researchpapers/CEH/WP201301.pdf
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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