PhD Lunch Seminars Amsterdam

Speaker(s)
Aart Huijg (VU University Amsterdam)
Date
2010-06-22
Location
Amsterdam

In the nineteenth century, railway networks strongly improved accessibility. New economic geography literature suggests that such accessibility improvements boosted economic growth. This cliometric study focuses on this issue by estimating the impact of the introduction of a railway network on the growth of municipalities in the Netherlands between 1840 and 1930. The paper contributes to existing literature in two ways. First, we generate an accessibility indicator by mapping a multimodal transport network. At the heart of this exercise are the opening and closing dates of railway lines and railway stations. Second, we simultaneously estimate a railway allocation model and a municipality growth model. The first model relates the probability of a municipality getting a railway link to potential economic growth. The second model reveals how strongly accessibility improvements stimulate local economic growth. Our preliminary results suggest a large positive effect of the introduction of the Dutch railway network on local economic growth.