The Transport Revolution in Industrializing Britain: A Survey

Between 1700 and 1870 Britain’s transport sector improved dramatically. This paper surveys the literature on Britain’s transport revolution and examines its contribution to economic growth during the Industrial Revolution. It reviews the important infrastructural and technological developments, documents the evolution of transport markets, and examines the developmental effects of transport. The most striking finding is that freight charges decreased by 95 percent in real terms from 1700 to 1870 implying an annual TFP of more than 2 percent. The broader conclusion is that transport improvements were major factor in raising the standard of living in Britain and were as significant as other innovations. At the same time, Britain’s history shows that many transport improvements were difficult to implement because they required financial innovation and involved taxation and vexing property rights issues. JEL Codes: N43, N73, R4