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The research aims to analyze the economic effects of railways in Habsburg Bosnia–Herzegovina and understand their impact on local populations.

April 16, 2026Open Access

Why railways fail : colonial railways and economic development in Habsburg Bosnia–Herzegovina

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Examines the impact of colonial railways on economic development in Bosnia–Herzegovina, suggesting mixed outcomes based on local conditions.

The research aims to analyze the economic effects of railways in Habsburg Bosnia–Herzegovina and understand their impact on local populations.
Analyzed census records of over 4500 settlements from 1885, 1895, and 1910.
Employed the inconsequential units approach and least-cost paths as instrumental variables.
Estimated the effect of railway access on changes in occupational structures.
Non-agricultural activity declined in settlements with direct railway access as craftsmen returned to agriculture.
New railway networks temporarily boosted non-agricultural activities by attracting factories and foreign labor.
Sustained growth in non-agricultural employment occurred in areas with higher human capital and stronger law enforcement.

Neubert et al. (2026) studied this question.

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Examines the impact of colonial railways on economic development in Bosnia–Herzegovina, suggesting mixed outcomes based on local conditions.