Locomotives of Local Growth: The Short- and Long-Term Impact of Railroads in Sweden∗ Thor Bergery Kerstin Enflo Preliminary Draft Abstract This paper uses city-level data to examine the impact of a first wave of railroad construction in Sweden, 1855-1870, from the 19th century until today. We es- timate that railroads accounted for 50% of urban growth, 1855-1870. In cities with access to the railroad network, property values were higher, manufactur- ing employment increased, establishments were larger, and more information was distributed through local post offices. Today, cities with early access to the net- work are substantially larger compared to initially similar cities. We hypothesize that railroads set in motion a path dependent process that shapes the economic geography of Sweden today. JEL: N73, N93, R12, R40. Keywords: Railroads, Industrialization, Urban Growth, Path Dependence. ∗Berger: PhD Candidate, Department of Economic History, School of Economics and Management, Lund University. Alfa 1, Scheelev¨agen15 B, 22363 Lund. (E-mail:
[email protected]) Enflo: Department of Economic History, School of Economics and Management, Lund University. Alfa 1, Scheelev¨agen15 B, 22363 Lund. (E-mail: Kerstin.Enfl
[email protected]) We are grateful for comments and suggestions made by Dan Bogart, Joan Ros´es,Nikolaus Wolf, and seminar participants at Copenhagen Business School, Humboldt University, Lund University, and the University of Southern Denmark on earlier drafts of this paper. An earlier version of this paper was published as an EHES working paper (#42).We gratefully acknowledge funding from the Swedish Research Council (grant no. 2008-2023) and the Crafoord Foundation (grant no.