Paving the way to modern growth. Evidence from the Bourbon roads in Spain

Abstract

This paper analyses the impact that Spanish road construction had on local population growth between 1787 and 1857. We find that the increase in market potential associated to road accessibility had a significant effect on local population growth. The impact was substantially higher on the municipalities that had a more diversified occupational structure. By contrast, the effect of the new network on population growth was negative in municipalities close but without direct access to the roads. We interpret these findings as evidence of a process of rural-to-rural migration due to the new roads.