Railroads, specialization, and population growth: evidence from the first globalization

Andrés Forero, Francisco Gallego, Felipe González and Matias Tapia
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Andrés Forero: Instituto de Economía

Journal of Population Economics, 2021, vol. 34, issue 3, No 9, 1027-1072

Abstract: Abstract We explore how railroads affected population growth during the first globalization (1865–1920) in Chile. We look at areas with a strong comparative advantage in agriculture using novel data that document 60 years of railroad construction. Using instrumental variables, we present four main findings. First, railroads increased both urban and rural population growth. Second, the impact was stronger in areas with more potential for agricultural expansion. Third, railroads increased specialization in agriculture when combined with a high level of the real exchange rate. And fourth, railroads had little effect on human capital and fertility. These results suggest that the effects of transportation technologies depend on existing macroeconomic conditions.

Keywords: Railroads; Specialization; Agriculture; Population (search for similar items in EconPapers)
JEL-codes: F14 N16 N76 O1 R1 R4 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s00148-020-00804-3

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