Colonial Investments and Long-Term Development in Africa: Evidence from Ghanaian Railroads

Abstract

Abstract: What is the impact of colonial infrastructure investments on long-term development? Railroad construction in colonial Ghana provides a natural experiment. Using panel data at a fine spatial level over one century, we find strong effects of rail connectivity on cash crop production, population, and urban growth. We exploit various identification strategies to ensure our effects are causal. Colonial railroads had large welfare effects for Ghanaians before independence. They also had a persistent impact, despite a complete displacement by other transportation means. Capital accumulation and demographic growth account for path dependence. Colonial railroads thus shaped the economic

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