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Transportation Technology and Economic Change: The Impact of Colonial Railroads on City Growth in Africa

Author

Listed:
  • Remi Jedwab

    (Department of Economics/Institute for International Economic Policy, George Washington University)

  • Alexander Moradi

    (University of Sussex)

Abstract

What is the impact of modern transportation technology on economic change in poor countries? Rail construction in colonial Africa provides a natural experiment. Using new data on railroads and cities over one century within one country, Ghana, and Africa as a whole, we find large permanent effects of transportation technology on economic development. First, railroads had strong effects on agriculture and urbanization before independence. Second, using the fact that railroads collapsed post-independence, we show they had a persistent impact. Evidence suggests that railroad cities persisted because their emergence served as a mechanism to coordinate investments for each subsequent period. Historical shocks can thus trigger an equilibrium in which cities will emerge to facilitate the accumulation of factors, which promotes long-term development.

Suggested Citation

  • Remi Jedwab & Alexander Moradi, 2014. "Transportation Technology and Economic Change: The Impact of Colonial Railroads on City Growth in Africa," Working Papers 2014-03, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2014-03
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    References listed on IDEAS

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    2. Huillery, Elise, 2014. "The Black Man's Burden: The Cost of Colonization of French West Africa," The Journal of Economic History, Cambridge University Press, vol. 74(1), pages 1-38, March.
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    5. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
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    Citations

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    Cited by:

    1. Junichi Yamasaki, 2017. "Railroads, Technology Adoption, and Modern Economic Development: Evidence from Japan," ISER Discussion Paper 1000, Institute of Social and Economic Research, The University of Osaka.
    2. Jean-François Maystadt & Gilles Duranton, 2019. "The development push of refugees: evidence from Tanzania," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 299-334.
    3. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1047-1120, Elsevier.
    4. Federico Tadei, 2017. "Measuring Extractive Institutions: Colonial Trade and Price Gaps in French Africa," Working Papers 0109, European Historical Economics Society (EHES).
    5. Jean-Francois Maystadt & Gilles Duranton, 2014. "The development push of refugees," Working Papers 66910685, Lancaster University Management School, Economics Department.
    6. Volpe Martincus, Christian & Carballo, Jerónimo & Cusolito, Ana, 2017. "Roads, exports and employment: Evidence from a developing country," Journal of Development Economics, Elsevier, vol. 125(C), pages 21-39.
    7. Redding, Stephen J. & Turner, Matthew A., 2015. "Transportation Costs and the Spatial Organization of Economic Activity," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1339-1398, Elsevier.
    8. Mikhailova, Tatiana (Михайлова, Татьяна), 2018. "Evacuation of Industry During the Great Patriotic War and the Growth of Russian Cities: Numerical Analysis [Эвакуация Промышленности В Годы Великой Отечественной Войны И Рост Городов России: Числен," Working Papers 031835, Russian Presidential Academy of National Economy and Public Administration.
    9. David Stifel & Bart Minten & Bethlehem Koru, 2016. "Economic Benefits of Rural Feeder Roads: Evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(9), pages 1335-1356, September.

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    More about this item

    Keywords

    Transportation Technology; Development; Path Dependence; Africa;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • N97 - Economic History - - Regional and Urban History - - - Africa; Oceania

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