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The Permanent Effects of Transportation Revolutions in Poor Countries: Evidence from Africa

Remi Jedwab () and Alexander Moradi ()

The Review of Economics and Statistics, 2016, vol. 98, issue 2, 268-284

Abstract: We exploit the construction and eventual demise of the colonial railroads in Ghana, and most of the rest of Africa, to study the impact of transportation investments in poor countries. Using new data on railroads and cities spanning over one century, we find that railroads had large effects on the distribution of economic activity during the colonial period and these effects have persisted to date, although railroads collapsed and road networks expanded considerably after independence. Initial transportation investments may thus have large effects in poor countries. As countries develop, increasing returns solidify their spatial distribution, and subsequent investments may have smaller effects.

Keywords: Transportation; Railroads; Development; Cities; Path Dependence; Roads (search for similar items in EconPapers)
JEL-codes: O1 O3 O18 R4 R1 N97 (search for similar items in EconPapers)
Date: 2016
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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