Ramírez Giraldo, M. T. 1999.

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'Ramírez, María Teresa. sf. Railroads and the Colombian Economy. ??????????

Abstract Recently in Colombia has emerged a new interest in explaining some facts in economic history within the context of cliometrics. However, the analysis of transportation infrastructure and its impact on the Colombian’s economic development has not received enough attention. The objective of this paper is to close this gap, after all transportation developments is a central topic in the study of country's economic history. In particular, this paper wants to answer, in a quantitative way, three main questions. First, what was the impact of the reduction of transportation costs on the Colombian economy? To this end, we use social savings estimations. Second, was the construction of railroads a main determinant in boosting coffee exports? The hypothesis is that improvements in transportation have been trigged by, and subsequently have contributed to, the expansion of coffee exports during the first half of the twenty century. To test this hypothesis we use Vector Auto-regression (VAR) estimations. Third, could declines in transportation costs, due to expansion in transportation infrastructure, explain reductions in the divergence among agricultural prices across Colombian cities? Finally, this paper provides a new database that contribute to the study of transportation developments in Colombia. The main contribution is to demonstrate, contrary to the popular believes, that railroads did not play an overwhelming role in Colombia's economy during the first half of the twentieth century.