Railroads and Economic Development Theory

Railroads and Economic Development Theory suggests that the construction of railroads significantly boosts economic growth. Railroads lower transportation costs, connect distant markets, and facilitate the movement of goods and people, encouraging trade, settlement, and industrialization. As a result, regions with improved railroad access often experience faster development, increased economic activity, and population growth. This theory highlights how infrastructure investments, like railroads, can act as catalysts that open up economic opportunities and promote nationwide or regional progress.