Abstract

We show that the creation of the first integrated pan-European transport network during Roman times influences economic integration over two millennia. Drawing on spatially highly disaggregated data on excavated Roman ceramics, we document that interregional trade was strongly influenced by connectivity within the network. Today, these connectivity differentials continue to influence cross-regional firm investment behaviour. Continuity is largely explained by selective infrastructure routing and cultural integration due to bilateral convergence in preferences and values. Both plausibly arise from network-induced history of repeated socio-economic interaction. We show that our results are Roman-connectivity specific and do not reflect pre-existing patterns of exchange.

Highlights

  • Large-scale transport infrastructure projects shape connectivity patterns and determine the distribution of economic activity across space by altering the costs of exchange

  • We provide evidence that Roman-era-specific transport network connectivity continued to influence the geography of trade at least until the advent of steam power and new transport technologies during the Industrial Revolution

  • ‘Roman effective distance’ represents the cost associated with shipping goods along the least cost path between grid cells, given the Roman transport network and Roman-era-specific freight rates for each mode of transport. ‘geodesic distance’ represents the length in kilometres of the straight-line between grid cells

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Summary

Introduction

Large-scale transport infrastructure projects shape connectivity patterns and determine the distribution of economic activity across space by altering the costs of exchange. In our preferred regression specification, which accounts for geodesic distance, geographical factors and home bias, ownership connections decline by 0.4% as Roman effective distance increases by 1% This finding highlights that today’s pattern of bilateral economic integration in Western Europe is (partly) determined by infrastructure routing decisions made 2,000 years ago. Persistence in access to the road network is identified as the main mediating factor We complement these findings by considering all modes of transport in the Roman network—including waterborne transport— and documenting that, in addition to levels of development, historical connectivity influences the intensity of bilateral economic exchange.

Background
The Roman transport network and its effect on economic integration
Production and trade of terra sigillata
Transport network connectivity
Empirical framework
Main results
Roman transport network connectivity and economic integration today
Extension
Threats to identification
Instrumental variable approach
Channels connecting Roman connectivity and current integration
Relative importance of channels
Findings
Conclusion
Full Text
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