Railroads of the Raj: Estimating the Impact of Transportation Infrastructure

@article{Donaldson2010RailroadsOT,
  title={Railroads of the Raj: Estimating the Impact of Transportation Infrastructure},
  author={D. Donaldson},
  journal={Urban Economics & Regional Studies eJournal},
  year={2010}
}
  • D. Donaldson
  • Published 2010
  • Economics
  • Urban Economics & Regional Studies eJournal
How large are the benefits of transportation infrastructure projects, and what explains these benefits? To shed new light on these questions, I collect archival data from colonial India and use it to estimate the impact of India's vast railroad network. Guided by six predictions from a general equilibrium trade model, I find that railroads: (1) decreased trade costs and interregional price gaps; (2) increased interregional and international trade; (3) eliminated the responsiveness of local… Expand
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