Railroad Expansion and Entrepreneurship: Evidence from Meiji Japan

AJRC Working Papers 02/ 2013 April 2013

34 Pages Posted: 26 Jul 2017

See all articles by John P. Tang

John P. Tang

ANU Research School of Economics

Date Written: April 2013

Abstract

Railroads in Meiji Japan are credited with facilitating factor mobility as well as access to human and financial capital, but the impact on firms is unclear. Using a newly developed firm-level dataset and a difference-in-differences model that exploits the temporal and spatial variation of railroad expansion, I assess the relationship between railways and firm activity across Japan. Results indicate that railroad expansion corresponded with increased firm activity, particularly in manufacturing, although this effect is mitigated in less populous regions. These findings are consistent with industrial agglomeration in areas with larger markets and earlier development among both new and existing establishments.

Keywords: agglomeration, entrepreneurship, firm genealogy, late development

JEL Classification: L26, N75, O53

Suggested Citation

Tang, John P., Railroad Expansion and Entrepreneurship: Evidence from Meiji Japan (April 2013). AJRC Working Papers 02/ 2013 April 2013, Available at SSRN: https://ssrn.com/abstract=3007462 or http://dx.doi.org/10.2139/ssrn.3007462

John P. Tang (Contact Author)

ANU Research School of Economics ( email )

LF Crisp Building 26
Canberra, Australian Capital Territory 0200
Australia

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