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Railways and economic development in a late-developing agrarian economy: Bulgaria, 1880–1910

Author

Listed:
  • Ivan Dichovski

    (London School of Economics and Political Science, Department of Economic History)

  • Stefan Nikolić

    (Loughborough University, Loughborough Business School)

Abstract

Can railways promote development in late-developing agrarian economies? This article examines Bulgaria between 1880 and 1910 using newly collected settlement-level data on population growth and agricultural productivity. We employ an inconsequential-units instrumental variable strategy based on least-cost paths. Railway access increased annual population growth by 0.6 percentage points and raised grain and cash-crop productivity by around 12 and 109 kilograms per decare of sown land, respectively. Productivity gains were larger in settlements farther from major export ports, consistent with railways promoting development by facilitating agricultural commercialisation and improving access to foreign markets.

Suggested Citation

  • Ivan Dichovski & Stefan Nikolić, 2026. "Railways and economic development in a late-developing agrarian economy: Bulgaria, 1880–1910," Working Papers 0310, European Historical Economics Society (EHES).
    • Handle: RePEc:hes:wpaper:0310
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    File URL: https://ehes.org/wp/EHES_310.pdf
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    Keywords

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    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • N9 - Economic History - - Regional and Urban History

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