CQH Working Paper No.0019 | Posted:  2026-10-20

Steam Beyond the Gateways: Steamship Connectivity and Industrial Entry in China

Author

  • Wanda Wang The University of Hong Kong

Keywords:

steamship, industrialization, technology diffusion, treaty ports, China

Abstract

Steamships were the first Western transport technology to diffuse widely in China, entering through treaty ports but later spreading beyond them. Using a prefecture-decade panel of 284 prefectures from 1840 to 1927, I find that prefectures gaining steamship connections saw substantially more modern industrial entry, concentrated in trade-intensive sectors. The results are robust to pre-steamship economic fundamentals and competing technologies, and are supported by a shift-share instrument based on hypothetical steamship-navigable access to early treaty ports. Foreign trade responded almost immediately, while native banking and industrial entry expanded gradually over subsequent decades, consistent with commercial deepening accompanying industrial entry.

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How to Cite

Wang, Wanda. 2026. “Steam Beyond the Gateways: Steamship Connectivity and Industrial Entry in China”. CQH Working Paper Series. https://aal.hku.hk/index.php/cqh/preprint/view/wp0019.

Funders

  • The Areas of Excellence Scheme (Project Reference No. AoE/B-704/22-R) from the Research Grants Council of Hong Kong
  • Research Grants Council of Hong Kong
    • The Areas of Excellence Scheme
      Grant Number AoE/B-704/22-R