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Nationalizations and the Development of Transport Systems: Cross-Country Evidence from Railroad Networks, 1860–1912

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  • Bogart, Dan
Abstract
Many states nationalized portions of their railroad network between 1860 and 1912. This article uses new cross-country data to examine which factors contributed to nationalizations and how nationalizations influenced network expansion. I find evidence that nationalizations were greater in countries with low constraints on the executive branch, with French and German civil law systems, and where neighboring countries had higher military capability. I also find evidence that nationalizations reduced mileage growth. The results suggest that external military threats increased the appeal of nationalizations, while legal and political institutions influenced their costs. They also suggest that nationalizations reduced investment incentives.

Suggested Citation

  • Bogart, Dan, 2009. "Nationalizations and the Development of Transport Systems: Cross-Country Evidence from Railroad Networks, 1860–1912," The Journal of Economic History, Cambridge University Press, vol. 69(1), pages 202-237, March.
    • Handle: RePEc:cup:jechis:v:69:y:2009:i:01:p:202-237_00
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    Citations

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    Cited by:

    1. Bogart, Dan, 2022. "Infrastructure and institutions: Lessons from history," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    2. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
    3. Komlos, John & Carson, Scott, 2017. "The BMI values of the lower classes likely declined during the Great Depression," Economics & Human Biology, Elsevier, vol. 26(C), pages 137-143.
    4. Vincent Bignon & Rui Esteves & Alfonso Herranz-Loncán, 2015. "Big push or big grab? Railways, government activism, and export growth in Latin America, 1865–1913," Economic History Review, Economic History Society, vol. 68(4), pages 1277-1305, November.
    5. Robert A. Margo, 2011. "The Economic History of the American Economic Review : A Century's Explosion of Economics Research," American Economic Review, American Economic Association, vol. 101(1), pages 9-35, February.
    6. Scott A. Carson, 2020. "Biological Differences between Late 19th and Early 20th Century Urban and Rural Residence," CESifo Working Paper Series 8523, CESifo.
    7. Coyle, Christopher & Musacchio, Aldo & Turner, John D., 2019. "Law and Finance in Britain c.1900," QBS Working Paper Series 2019/11, Queen's University Belfast, Queen's Business School.
    8. repec:ial:wpaper:5 is not listed on IDEAS
    9. Tawanda Chingozha & Dieter von Fintel, 2019. "Property rights, market access and crop cultivation in Southern Rhodesia: evidence from historical satellite data," Working Papers 03/2019, Stellenbosch University, Department of Economics.
    10. Ayumu Banzawa, 2012. "What caused the failure of nationalisation of the railway system in Germany? : Malfunction of the German Imperial Railway Office (Reichseisenbahnamt) in the 1870s and 1880s," Discussion Papers in Economics and Business 12-18, Osaka University, Graduate School of Economics.
    11. Coyle, Christopher & Musacchio, Aldo & Turner, John D., 2019. "Law and finance in Britain c.1900," Financial History Review, Cambridge University Press, vol. 26(3), pages 267-293, December.
    12. Robert MILLWARD, 2010. "Public enterprise in the modern western world: an historical analysis," Departmental Working Papers 2010-26, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    13. Bogart, Dan, 2010. "A global perspective on railway inefficiency and the rise of state ownership, 1880-1912," Explorations in Economic History, Elsevier, vol. 47(2), pages 158-178, April.
    14. Scott A. Carson, 2020. "Body Mass, Nutrition, and Disease: Current Net Nutrition during US Economic Development," CESifo Working Paper Series 8464, CESifo.
    15. Avner Offer, 2018. "Patient and impatient capital: time horizons as market boundaries," Oxford Economic and Social History Working Papers _165, University of Oxford, Department of Economics.
    16. Quiroz Flores, Alejandro & Pfaff, Katharina, 2021. "Private provision of public goods and political survival: Rail transport in four European democracies in the 20th century," Research in Transportation Economics, Elsevier, vol. 90(C).
    17. Carson, Scott Alan, 2019. "Late 19th, early 20th century US, foreign-born body mass index values in the United States," Economics & Human Biology, Elsevier, vol. 34(C), pages 26-38.
    18. Allen, Franklin, et al., 2010. "How Important Historically Were Financial Systems for Growth in the U.K., U.S., Germany, and Japan?," Working Papers 10-27, University of Pennsylvania, Wharton School, Weiss Center.
    19. Martí-Henneberg, Jordi, 2017. "The influence of the railway network on territorial integration in Europe (1870–1950)," Journal of Transport Geography, Elsevier, vol. 62(C), pages 160-171.
    20. Scott Alan Carson, 2022. "Body mass, nutrition, and disease: nineteenth century current net nutrition during economic development," Journal of Bioeconomics, Springer, vol. 24(1), pages 37-65, April.

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