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Engines of Growth: The Productivity Advance of Indian Railways, 1874–1912

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  • Bogart, Dan
  • Chaudhary, Latika

Abstract

Railways were integral to the development of the Indian economy before World War I. This article presents new estimates of total factor productivity (TFP) for railways from 1874 to 1912, which highlight the strong performance of this key industrial sector. Railway-industry TFP growth was substantial averaging 2.3 percent per year and generating a 2.7 percent social savings for the Indian economy. A combination of factors contributed to TFP growth including greater capacity utilization, technological change, and improvements in organization and governance. Railways had higher TFP growth than most sectors in India and compared favorably with TFP growth in other countries.

Suggested Citation

  • Bogart, Dan & Chaudhary, Latika, 2013. "Engines of Growth: The Productivity Advance of Indian Railways, 1874–1912," The Journal of Economic History, Cambridge University Press, vol. 73(2), pages 339-370, June.
    • Handle: RePEc:cup:jechis:v:73:y:2013:i:02:p:339-370_00
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    Cited by:

    1. Dan Bogart & Latika Chaudhary & Alfonso Herranz-Loncan, 2015. "The Growth Contribution of Colonial Indian Railways in Comparative Perspective," CEH Discussion Papers 033, Centre for Economic History, Research School of Economics, Australian National University.
    2. Nicholas Sheard, 2022. "The Railway Gauge Muddle in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-327, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Bogart, Dan & Chaudhary, Latika, 2015. "Off the rails: Is state ownership bad for productivity?," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 997-1013.
    4. Roy, Tirthankar, 2021. "Useful & reliable: technological transformation in colonial India," LSE Research Online Documents on Economics 113442, London School of Economics and Political Science, LSE Library.
    5. Holland, Kateryna, 2019. "Government investment in publicly traded firms," Journal of Corporate Finance, Elsevier, vol. 56(C), pages 319-342.
    6. Ewout Frankema & Marlous van Waijenburg, 2023. "What about the race between education and technology in the Global South? Comparing skill premiums in colonial Africa and Asia," Economic History Review, Economic History Society, vol. 76(3), pages 941-978, August.
    7. Roy, Tirthankar, 2014. "Technology in Colonial India: Three Discourses," CAGE Online Working Paper Series 198, Competitive Advantage in the Global Economy (CAGE).
    8. Johan Fourie & Leigh Gardner, 2014. "The Internationalization of Economic History: A Puzzle," Economic History of Developing Regions, Taylor & Francis Journals, vol. 29(1), pages 1-14, June.
    9. Rishabh Kumar, 2018. "Poor country, rich history, many lessons: The evolution of wealth-income ratios in India 1860-2012," Working Papers 1802, New School for Social Research, Department of Economics.
    10. Nicholas Sheard, 2021. "The network of US airports and its effects on employment," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 623-648, June.
    11. Berger, Thor & Enflo, Kerstin, 2017. "Locomotives of local growth: The short- and long-term impact of railroads in Sweden," Journal of Urban Economics, Elsevier, vol. 98(C), pages 124-138.
    12. Fenske, James & Kala, Namrata & Wei, Jinlin, 2023. "Railways and cities in India," Journal of Development Economics, Elsevier, vol. 161(C).
    13. Kakpo, Eliakim & Le Gallo, Julie & Grivault, Camille & Breuillé, Marie, 2019. "Does railway accessibility boost population growth? Evidence from unfinished historical roadways in France," MPRA Paper 96743, University Library of Munich, Germany.
    14. Marchetti, Dalmo & Wanke, Peter, 2017. "Brazil's rail freight transport: Efficiency analysis using two-stage DEA and cluster-driven public policies," Socio-Economic Planning Sciences, Elsevier, vol. 59(C), pages 26-42.
    15. Ran Abramitzky, 2015. "Economics and the Modern Economic Historian," NBER Working Papers 21636, National Bureau of Economic Research, Inc.

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