Revolutionizing transport: modern infrastructure, agriculture and development in Ghana

Jedwab, Remi and Moradi, Alexander (2012) Revolutionizing transport: modern infrastructure, agriculture and development in Ghana. In: Modern and Comparative seminar, 2012-03-08, London, United Kingdom, GBR. (Submitted)

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Abstract

We study the impact of colonial investments in modern transportation in- frastructure on agriculture and development in Ghana. Two railway lines were built between 1901 and 1923 to connect the coast to mining areas and the large hinterland city of Kumasi. This unintendedly opened vast expanses of tropical forest to cocoa cultivation, allowing Ghana to become the world's largest producer. Using data at a very fine spatial level, we find a strong effect of railroad connectivity on cocoa production in 1927, generating rents in the order of 4.5% of GDP. We show that the economic boom in cocoa-producing areas was associated with demographic growth and urbanization. We find no effect for lines that were not built yet, and lines that were planned but never built. Lastly, railway construction had a persistent impact: railway districts are more developed today despite a complete displacement of rail by other means of transport

Item Type:	Conference or Workshop Item (Paper)
Official URL:	http://www2.lse.ac.uk/economicHistory/seminars/Mod...
Additional Information:	© 2012 The Authors
Divisions:	Economic History STICERD
Subjects:	H Social Sciences > HE Transportation and Communications
JEL classification:	F - International Economics > F1 - Trade N - Economic History > N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations > N17 - Africa; Oceania O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Regional, Urban, and Rural Analyses R - Urban, Rural, and Regional Economics > R4 - Transportation Systems
Date Deposited:	07 Mar 2012 16:06
Last Modified:	12 Dec 2024 04:51
URI:	http://eprints.lse.ac.uk/id/eprint/42263

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