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TRANSPORT TECHNOLOGY AND ECONOMIC EXPANSION: THE GROWTH CONTRIBUTION OF RAILWAYS IN LATIN AMERICA BEFORE 1914*

Published online by Cambridge University Press:  29 November 2013

Alfonso Herranz-Loncán*
Affiliation:
Department of Economic History and Institutions, University of Barcelona, Diagonal, 690; 08034 Barcelona, Spain. alfonso.herranz@ub.edu

Abstract

This paper measures the direct contribution of railways to economic growth before 1914 in four Latin American economies with large railway systems (Argentina, Brazil, Mexico and Uruguay) using growth accounting techniques. The outcomes of the analysis indicate that the growth contribution of railways in Uruguay was very low. By contrast, in Argentina and Mexico railways provided huge benefits, amounting to 20-25% of income per capita growth before 1914. Finally, in Brazil, the growth contribution of railways was even higher, although this was largely a consequence of the stagnation of the Brazilian economy. These results provide an example of a technology whose growth contribution was much higher in some peripheral economies than in the core countries where it was developed.

Resumen

En este artículo se estima, aplicando las técnicas de contabilidad del crecimiento, la contribución directa de los ferrocarriles al crecimiento económico, antes de 1914, de cuatro economías latinoamericanas con sistemas ferroviarios muy desarrollados (Argentina, Brasil, México y Uruguay). Los resultados del análisis indican que la contribución directa de los ferrocarriles al crecimiento económico uruguayo fue muy baja. En cambio, los ferrocarriles proporcionaron a Argentina y México unos beneficios directos de enorme magnitud, que representaron entre el 20% y el 25% del crecimiento de la renta per cápita de esos países antes de 1914. Finalmente, la contribución de los ferrocarriles brasileños al crecimiento económico fue todavía mayor, aunque ello fue en gran medida consecuencia del estancamiento de la economía brasileña. Estos resultados ofrecen un ejemplo de una tecnología cuya contribución al crecimiento fue mucho mayor en algunas economías periféricas que en los países industrializados en los que esa tecnología se desarrolló.

Type
Articles/Artículos
Copyright
Copyright © Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid 2013 

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Footnotes

*

This research has been financed by the Spanish Ministry of Science and Innovation project ECO2012-39169-C03-03. I thank Sandra Kuntz, Paolo Riguzzi and the participants at the I Encuentro de la AEHE, the XXVI Jornadas of the Banco Central del Uruguay, the 2011 Carlos III FRESH Meeting and the 9th EHES Conference for their comments and help. They are not responsible for any mistakes in the paper.

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