Steam Beyond the Gateways: Steamship Connectivity and Industrial Entry in China
Keywords:
steamship, industrialization, technology diffusion, treaty ports, ChinaAbstract
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.
Downloads
References (58)
Allen, Robert C., 2023. “The Transportation Revolution and the English Coal Industry, 1695–1842: A Geographical Approach.” The Journal of Economic History 83: 1175–1220.
Bogart, Dan, 2005. “Turnpike Trusts and the Transportation Revolution in 18th Century England.” Explorations in Economic History 42: 281–308.
Borusyak, Kirill, Peter Hull, and Xavier Jaravel, 2022. “Quasi‑Experimental Shift‑Share Research Designs.” The Review of Economic Studies 89: 181–213.
Brandt, Loren, Debin Ma, and Thomas G. Rawski, 2014. “From Divergence to Convergence: Reevaluating the History Behind China’s Economic Boom.” Journal of Economic Literature 52: 45–123.
Braun, Sebastian Till, and Richard Franke, 2022. “Railways, Growth, and Industrialization in a Developing German Economy, 1829–1910.” The Journal of Economic History 82: 1183–1221.
Callaway, Brantly, and Pedro H. C. Sant’Anna, 2021. “Difference‑In‑Differences With Multiple Time Periods.” Journal of Econometrics 225: 200–230.
Cao, Shuji, 2001. Zhongguo Renkoushi: Qing Shiqi [Population History of China: Qing Period]. Fudan University Press, Shanghai.
Chen, Jiafeng, and Jonathan Roth, 2024. “Logs With Zeros? Some Problems and Solutions.” The Quarterly Journal of Economics 139: 891–936.
Chen, Yuqing, 2013. Guomin Zhengfu Qingcha Zhengli Zhaoshangju Weiyuanhui Baogaoshu [Report of the Nationalist Government Committee on Investigation and Rectification of the China Merchants Bureau]. Social Sciences Academic Press, Beijing.
Cheng, Linsun, 2003. Banking in Modern China: Entrepreneurs, Professional Managers, and the Development of Chinese Banks, 1897–1937. Cambridge University Press, Cambridge.
China Historical Geographic Information System, 2016. CHGIS, Version: 6. Fairbank Center for Chinese Studies of Harvard University and the Center for Historical Geographical Studies at Fudan University.
China’s Military History Editorial Committee, 2003. Zhongguo Lidai Zhanzheng Nianbiao [A Chronology of Warfare in Dynastic China]. Zhongguo Renmin Jiefangjun Chubanshe.
Conley, Timothy G., 1999. “GMM Estimation With Cross Sectional Dependence.” Journal of Econometrics 92: 1–45.
Crafts, Nicholas, 2004. “Steam As a General Purpose Technology: A Growth Accounting Perspective.” The Economic Journal 114: 338–351.
Crafts, Nicholas, 2011. “Explaining the First Industrial Revolution: Two Views.” European Review of Economic History 15: 353–368.
Donaldson, Dave, 2018. “Railroads of the Raj: Estimating the Impact of Transportation Infrastructure.” American Economic Review 108: 899–934.
Donaldson, Dave, and Richard Hornbeck, 2016. “Railroads and American Economic Growth: A ‘Market Access’ Approach.” The Quarterly Journal of Economics 131: 799–858.
Du, Xuncheng, 2014. Minzu Ziben Zhuyi Yu Jiuzhongguo Zhengfu, 1840–1937 [National Capitalism and the Old Chinese Government, 1840–1937]. Shanghai Renmin Chubanshe, Shanghai.
East Asia Common Culture Society, 1917. Shina Sōbetsu Zenshishi [A Comprehensive Gazetteer of the Provinces in China]. Guojia Tushuguan Chubanshe, Beijing. Reprint 2015.
Fairbank, John King, 1964. Trade and Diplomacy on the China Coast: The Opening of Treaty Ports, 1842–1854. Harvard University Press.
Feuerwerker, Albert, 1970. “Handicraft and Manufactured Cotton Textiles in China, 1871–1910.” The Journal of Economic History 30: 338–378.
Findlay, Ronald, and Kevin H. O’Rourke, 2009. Power and Plenty: Trade, War, and the World Economy in the Second Millennium. Princeton University Press, Princeton, NJ.
Gao, Pei, and Yu‑Hsiang Lei, 2021. “Communication Infrastructure and Stabilizing Food Prices: Evidence From the Telegraph Network in China.” American Economic Journal: Applied Economics 13: 65–101.
Goldsmith‑Pinkham, Paul, Isaac Sorkin, and Henry Swift, 2020. “Bartik Instruments: What, When, Why, and How.” American Economic Review 110: 2586–2624.
Guo, Yibei, and Baomin Dong, 2021. “Railway and Trade in Modern China: Evidence From the 1930s.” China Economic Review 69: 101661.
Hao, Yu, and Yuxiang Wang, 2025. “Telegraph and Capital Market Integration: Evidence From Late Imperial China.” The Economic History Review 79: 781–810.
Hao, Yu, Zhiqiang Wang, and Zhe Zhang, 2025. “Steamship Shipping and Market Integration: Evidence From Late Qing China.” Jingji Kexue [Economic Science]: 215–237.
Jedwab, Remi, and Alexander Moradi, 2016. “The Permanent Effects of Transportation Revolutions in Poor Countries: Evidence From Africa.” The Review of Economics and Statistics 98: 268–284.
Jia, Ruixue, 2014. “The Legacies of Forced Freedom: China’s Treaty Ports.” The Review of Economics and Statistics 96: 596–608.
Jiang, Jianqing, 2014. Jindai Zhongguo Yinhangye Jigou Renming Dacidian [Encyclopedic Dictionary of Chinese Banking Institutions and Bankers]. Shanghai Guji Chubanshe, Shanghai.
Jin, Gan, 2023. “Circle of Fortune: The Long‑Term Impact of Western Customs Institution in China.” Journal of Development Economics 163: 103075.
Keller, Wolfgang, Javier Andres Santiago, and Carol H. Shiue, 2017. “China’s Domestic Trade During the Treaty‑Port Era.” Explorations in Economic History 63: 26–43.
Keller, Wolfgang, and Carol H. Shiue, 2021. “The Economic Consequences of the Opium War.” NBER Working Paper 29404.
Köll, Elisabeth, 2022. “Transport and Communication Infrastructure.” In Debin Ma and Richard von Glahn, eds., The Cambridge Economic History of China, Volume II: 1850–1950, 457–495. Cambridge University Press, Cambridge.
Lehner, Bernhard, and Günther Grill, 2013. “Global River Hydrography and Network Routing: Baseline Data and New Approaches to Study the World’s Large River Systems.” Hydrological Processes 27: 2171–2186.
Levine, Ross, Chen Lin, Chicheng Ma, and Yuchen Xu, 2023. “The Legal Origins of Financial Development: Evidence From the Shanghai Concessions.” The Journal of Finance 78: 3423–3464.
Lin, Chen, Chicheng Ma, Yuchen Sun, and Yuchen Xu, 2021. “The Telegraph and Modern Banking Development, 1881–1936.” Journal of Financial Economics 141: 730–749.
Liu, Cong, 2020. “The Effects of World War I on the Chinese Textile Industry: Was the World’s Trouble China’s Opportunity?” The Journal of Economic History 80: 246–285.
Liu, Kwang‑Ching, 1962. Anglo‑American Steamship Rivalry in China, 1862–1874. Harvard University Press.
Liu, Ts’ui‑jung, 1980. Trade on the Han River and Its Impact on Economic Development, c. 1800–1911. Institute of Economics, Academia Sinica, Taipei.
Martinez, Marco, Alessandro Nuvolari, and Michelangelo Vasta, 2025. “Rails of Progress? Exploring the Nexus Between Railroad Access and Innovation in Italy (19th‑20th Centuries).” Explorations in Economic History: 101718.
Nie, Baozhang, 1983. Zhongguo Jindai Hangyunshi Ziliao [Historical Materials of Ship Transport in Modern China], vol. 1. Shanghai People’s Press, Shanghai.
Nie, Baozhang, and Yingui Zhu, 2002. Zhongguo Jindai Hangyunshi Ziliao [Historical Materials of Ship Transport in Modern China], vol. 2. China’s Social Science Press, Beijing.
O’Rourke, Kevin Hjortshøj, and Jeffrey G. Williamson, 2001. Globalization and History: The Evolution of a Nineteenth‑Century Atlantic Economy. MIT Press, Cambridge, MA.
Pascali, Luigi, 2017. “The Wind of Change: Maritime Technology, Trade, and Economic Development.” American Economic Review 107: 2821–2854.
Peng, Zeyi, 1995. Zhongguo Gongshang Hanghui Shiliao Ji [Source Materials on Chinese Commercial and Artisan Guilds], 2 vols. Zhonghua Shuju, Beijing.
Rajan, Raghuram G., and Luigi Zingales, 1998. “Financial Dependence and Growth.” American Economic Review 88: 559–586.
Rawski, Thomas G., 1969. “Chinese Dominance of Treaty Port Commerce and Its Implications, 1860–1875.” Explorations in Economic History 7: 451–473.
Reinhardt, Anne, 2018. Navigating Semi‑Colonialism: Shipping, Sovereignty, and Nation‑Building in China, 1860–1937. Harvard University Asia Center, Cambridge, MA.
Second Historical Archives of China, 2001. Zhongguo Jiuhai Guan Shiliao [China’s Old Customs Historical Materials], 1859–1948. Jinghua Publishing House, Beijing.
Shizhengchu, 1967. Zhongguo Xiandai Junshishi Zhuyao Zhanyi Biao [Chronicles of Major Battles in China’s Modern Military History]. Shizhengchu, Taipei.
Skinner, G. William, 1977. “Regional Urbanization in Nineteenth‑Century China.” In G. William Skinner, ed., The City in Late Imperial China, 211–249. Stanford University Press, Stanford.
Sun, Benxiang, 2003. Zhongguo Tielu Zhanming Cidian [Dictionary of Chinese Railway Stations]. Zhongguo Tiedao Chubanshe, Beijing.
Szostak, Rick, 1991. The Role of Transportation in the Industrial Revolution: A Comparison of England and France. McGill‑Queen’s University Press, Montreal.
The People’s Bank of China Shanghai Branch, 1960. Shanghai Qianzhuang Shiliao [Historical Materials on Money Houses in Shanghai]. Shanghai Renmin Chubanshe, Shanghai.
Transportation History Compilation Committee, 1931. Jiaotong Shi: Hangzheng Bian [History of Transportation: Shipping Administration]. Guojia Tushuguan Chubanshe, Beijing. Reprint 2009.
U.S. Army Corps of Engineers, 1980. Layout and Design of Shallow‑Draft Waterways. Technical Report Engineer Manual EM 1110‑2‑1611, Department of the Army, Washington, DC.
Yan, Zhongping, 2012. Zhongguo Jindai Jingjishi Tongji Ziliao Xuanji [Selected Statistics of the Early Modern China]. Zhongguo Shehui Kexue Chubanshe, Beijing.
Downloads
How to Cite
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
-
The Areas of Excellence Scheme
License
Copyright (c) 2026 CQH does not retain copyright in its Working Paper Series. Copyright in each paper remains vested in the respective author(s). Contact details for the author(s) are available on the abstract page of the relevant paper.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The CQH Working Paper Series is a scholarly platform of the Centre for Quantitative History dedicated to facilitating the circulation of research. Copyright in each paper remains with the author(s). Authors publishing in the Series grant CQH a non-exclusive right to host, archive, and make the paper publicly available as part of the Series. Unless otherwise indicated, papers are distributed under a CC BY-NC-ND 4.0 licence.