IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v53y2012i3p693-716.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-2354.2012.00697.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-2354.2012.00697.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fogel, Robert William, 1979. "Notes on the Social Saving Controversy," The Journal of Economic History, Cambridge University Press, vol. 39(1), pages 1-54, March.
    2. Basu, Susanto & Fernald, John G, 1997. "Returns to Scale in U.S. Production: Estimates and Implications," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 249-283, April.
    3. Thomas Weiss, 1987. "The Farm Labor Force by Region, 1820-1860: Revised Estimates and Implications for Growth," NBER Working Papers 2438, National Bureau of Economic Research, Inc.
    4. Thomas J. Weiss, 1992. "U. S. Labor Force Estimates and Economic Growth, 1800-1860," NBER Chapters, in: American Economic Growth and Standards of Living before the Civil War, pages 19-78, National Bureau of Economic Research, Inc.
    5. Uy, Timothy & Yi, Kei-Mu & Zhang, Jing, 2013. "Structural change in an open economy," Journal of Monetary Economics, Elsevier, vol. 60(6), pages 667-682.
    6. Matthew Slaughter, 2001. "Does trade liberalization converge factor prices? Evidence from the antebellum transportation revolution," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(3), pages 339-362.
    7. Robert E. Gallman & John Joseph Wallis, 1992. "American Economic Growth and Standards of Living before the Civil War," NBER Books, National Bureau of Economic Research, Inc, number gall92-1.
    8. Alex Mourmouras & Peter Rangazas, 2009. "Reconciling Kuznets and Habbakuk in a unified growth theory," Journal of Economic Growth, Springer, vol. 14(2), pages 149-181, June.
    9. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    10. Akos Valentinyi & Berthold Herrendorf, 2008. "Measuring Factor Income Shares at the Sector Level," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 820-835, October.
    11. Kiminori Matsuyama, 2009. "Structural Change in an Interdependent World: A Global View of Manufacturing Decline," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 478-486, 04-05.
    12. Tasso Adamopoulos, 2011. "Transportation Costs, Agricultural Productivity, And Cross‐Country Income Differences," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(2), pages 489-521, May.
    13. David Lagakos, 2009. "Superstores or mom and pops? Technolgy adoption and productivity differences in retail trade," Staff Report 428, Federal Reserve Bank of Minneapolis.
    14. The Conference on Research in Income and Wealth, 1960. "Trends in the American Economy in the Nineteenth Century," NBER Books, National Bureau of Economic Research, Inc, number unkn60-1.
    15. Coelho, Philip R. P. & Shepherd, James F., 1976. "Regional differences in real wages: The United States, 1851-1880," Explorations in Economic History, Elsevier, vol. 13(2), pages 203-230, April.
    16. Francesco Caselli & Wilbur John Coleman II, 2001. "The U.S. Structural Transformation and Regional Convergence: A Reinterpretation," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 584-616, June.
    17. Dorothy S. Brady, 1966. "Output, Employment, and Productivity in the United States after 1800," NBER Books, National Bureau of Economic Research, Inc, number brad66-1.
    18. Robert E. Gallman, 1992. "American Economic Growth before the Civil War: The Testimony of the Capital Stock Estimates," NBER Chapters, in: American Economic Growth and Standards of Living before the Civil War, pages 79-120, National Bureau of Economic Research, Inc.
    19. Margo, Robert A., 1999. "Regional Wage Gaps and the Settlement of the Midwest," Explorations in Economic History, Elsevier, vol. 36(2), pages 128-143, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Junichi Yamasaki, 2017. "Railroads, Technology Adoption, and Modern Economic Development: Evidence from Japan," ISER Discussion Paper 1000, Institute of Social and Economic Research, Osaka University.
    2. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    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.
    4. Xie, Lin & Wang, Shaozhuang & Yan, Lingxiao, 2024. "Distributional effects of expressway access on rural entrepreneurial activities in China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    5. Karayalcin, Cem & Pintea, Mihaela, 2022. "The role of productivity, transportation costs, and barriers to intersectoral mobility in structural transformation," Economic Modelling, Elsevier, vol. 108(C).
    6. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    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).
    11. repec:esx:essedp:729 is not listed on IDEAS
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arilton Teixeira & Berthold Herrendorf & James A. Schmitz Jr., 2009. "Transportation and Development:Insights from the U.S. 1840-1860," Fucape Working Papers 18, Fucape Business School.
    2. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    3. Alex Mourmouras & Peter Rangazas, 2009. "Reconciling Kuznets and Habbakuk in a unified growth theory," Journal of Economic Growth, Springer, vol. 14(2), pages 149-181, June.
    4. Teignier, Marc, 2018. "The role of trade in structural transformation," Journal of Development Economics, Elsevier, vol. 130(C), pages 45-65.
    5. Guillaume Vandenbroucke, 2008. "The American Frontier: Technology versus Immigration," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(2), pages 283-301, April.
    6. Fei, Xuan, 2022. "Trade liberalization and structural changes: Prefecture-level evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 103-126.
    7. Lindert, Peter H. & Williamson, Jeffrey G., 2013. "American Incomes Before and After the Revolution," The Journal of Economic History, Cambridge University Press, vol. 73(3), pages 725-765, September.
    8. Paul A. David, 1996. "Real Income and Economic Welfare Growth in the Early Republic or, Another Try at Getting the American Story Straight," Oxford Economic and Social History Working Papers _005, University of Oxford, Department of Economics.
    9. Robert A. Margo, 2002. "The North-South Wage Gap, Before and After the Civil War," NBER Working Papers 8778, National Bureau of Economic Research, Inc.
    10. Chiswick, Barry R. & Robinson, RaeAnn Halenda, 2021. "Women at work in the United States since 1860: An analysis of unreported family workers," Explorations in Economic History, Elsevier, vol. 82(C).
    11. Sáenz, Luis Felipe, 2022. "Time-varying capital intensities and the hump-shaped evolution of economic activity in manufacturing," Journal of Macroeconomics, Elsevier, vol. 73(C).
    12. Chen, Chaoran, 2020. "Technology adoption, capital deepening, and international productivity differences," Journal of Development Economics, Elsevier, vol. 143(C).
    13. David Greasley & Nick Hanley & Eoin McLaughlin & Les Oxley, 2014. "The Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growth," Discussion Papers in Environment and Development Economics 2014-01, University of St. Andrews, School of Geography and Sustainable Development.
    14. Desmet, Klaus & Henderson, J. Vernon, 2015. "The Geography of Development Within Countries," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1457-1517, Elsevier.
    15. Tasso Adamopoulos & Diego Restuccia, 2014. "The Size Distribution of Farms and International Productivity Differences," American Economic Review, American Economic Association, vol. 104(6), pages 1667-1697, June.
    16. Robert Allen & Robert C. Allen, 2011. "Technology and the Great Divergence," Economics Series Working Papers 548, University of Oxford, Department of Economics.
    17. van Neuss, Leif, 2018. "Globalization and deindustrialization in advanced countries," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 49-63.
    18. Dávid Krisztián Nagy, 2021. "Quantitative Economic Geography Meets History: Questions, Answers and Challenges," Working Papers 1249, Barcelona School of Economics.
    19. Ricardo Reyes-Heroles, 2018. "Globalization and Structural Change in the United States: A Quantitative Assessment," 2018 Meeting Papers 1027, Society for Economic Dynamics.
    20. Comunale, Mariarosaria & Felice, Giulia, 2022. "Trade and structural change: An empirical investigation," International Economics, Elsevier, vol. 171(C), pages 58-79.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:iecrev:v:53:y:2012:i:3:p:693-716. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.