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The Role Of Transportation In U.S. Economic Development: 1840–1860

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  • Berthold Herrendorf
  • James A. Schmitz, Jr.
  • Arilton Teixeira

Abstract

We return to two questions concerning the 19th century U.S. transportation revolution. First, to what extent were transportation improvements responsible for the large changes in the regional distribution of population in the United States and, within regions, for the changes in industry structure? Second, how important were transportation improvements for welfare gains? We find that transport improvements were the key factor driving where people lived and what industry they worked in. We also find that transport improvements were important for welfare gains: Gains over 1840–1860 would have been only half as large if there had been no transportation improvements.

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  • Berthold Herrendorf & James A. Schmitz, Jr. & Arilton Teixeira, 2012. "The Role Of Transportation In U.S. Economic Development: 1840–1860," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 693-716, August.
    • Handle: RePEc:wly:iecrev:v:53:y:2012:i:3:p:693-716
    DOI: 10.1111/j.1468-2354.2012.00697.x
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    3. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
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    7. Adam, Christopher & Bevan, David & Gollin, Douglas, 2018. "Rural–Urban Linkages, Public Investment and Transport Costs: The Case of Tanzania," World Development, Elsevier, vol. 109(C), pages 497-510.
    8. Alex Trew, 2016. "Endogenous Infrastructure Development and Spatial Takeoff," Discussion Paper Series, School of Economics and Finance 201601, School of Economics and Finance, University of St Andrews, revised 17 Jan 2019.
    9. Gollin, Douglas & Rogerson, Richard, 2014. "Productivity, transport costs and subsistence agriculture," Journal of Development Economics, Elsevier, vol. 107(C), pages 38-48.
    10. Guo, Yibei & Dong, Baomin, 2021. "Railway and trade in modern China: Evidence from the 1930s," China Economic Review, Elsevier, vol. 69(C).
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    12. Rivera-Padilla, Alberto, 2020. "Crop choice, trade costs, and agricultural productivity," Journal of Development Economics, Elsevier, vol. 146(C).
    13. Tohari, Achmad & Parsons, Christopher & Rammohan, Anu, 2021. "Capital Fundamentalism and Structural Transformation," IZA Discussion Papers 14444, Institute of Labor Economics (IZA).
    14. Sheng, Yu & Zhao, Yuhan & Zhang, Qian & Dong, Wanlu & Huang, Jikun, 2022. "Boosting rural labor off-farm employment through urban expansion in China," World Development, Elsevier, vol. 151(C).
    15. Ho, Chi Pui, 2015. "Population growth and structural transformation," MPRA Paper 68014, University Library of Munich, Germany.

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