The Backward Linkage Effect of Railroads on Swedish Industry, 1860-1914

• The concept of Backward Linkage Effect and its impact on economic growth is often discussed in economic literature. The concept has been used to explain the industrial break-through of developed countries. The role of the construction and maintenance of railroads has often been stressed in this context. The backward linkage effect of railroads on Swedish industry during the Swedish industrial break-through is quantified and discussed in this article. The railroad demand did not have much impact on the Swedish iron and steel industry partly because the domestic market for rails was small and partly because rails could not be produced within the country at competitive prices. The impact on the mechanical engineering industry was greater, although it still did not create any specialized firms for railroad material due to the small size and irregularity of the market.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

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