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• W2187968081 abstract "The railway played a large part in late nineteenth century and early twentieth century globalization since, to bene & t from the international economy, peripheral countries needed cheap inland transport. This pa- per discusses how the railway transformed the economy of South Africas Cape Colony during the & rst era of globalization. A very large share of the Colonys GDP came from rail transportits resource saving eect was one of the highest in the world at that time. We estimate that 46 to 51% of the Colonys increase in labor productivity between 1873 and 1905 came directly from the railway, whether from investment in the rail network or from savings in transport costs. We argue that it was the boom in diamond production, necessitating the building of the railway to connect the Kimberley diamond & elds with the international economy, that weighted the Colonys economy so heavily towards the rail trans- port sector. The railway not only boosted the Colonys growth, it also re-shaped its economic geography, organizing it around the railway lines that connected the diamond mines with the ports. Areas not served by the railway missed out on the bene & ts of globalization. As these areas were mostly populated by blacks, the railway helped to create a dual economy with a racial social divide and was later instrumental in creating black � homelandsand establishing the apartheid institutions. JEL CODES: N4, H4, O Key wordsrailways, Cape Colony, South Africa, social savings, economic geography, segregation" @default.
• W2187968081 created "2016-06-24" @default.
• W2187968081 creator A5012245819 @default.
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• W2187968081 date "2015-01-01" @default.
• W2187968081 modified "2023-09-27" @default.
• W2187968081 title "Growth (and Segregation) by Rail: How the Railways Shaped Colonial South Africa" @default.
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