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

Published online by Cambridge University Press:  01 March 2009

Dan Bogart
Dan Bogart*
Affiliation:
Assistant Professor, Department of Economics, University of California, Irvine, 3151 Social Science Plaza, Irvine, CA 92697–5100. E-mail: [email protected].
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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.

Type
ARTICLES
Information
The Journal of Economic History , Volume 69 , Issue 1 , March 2009 , pp. 202 - 237
Copyright
Copyright © The Economic History Association 2009

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