This paper examines the impact of access to transportation infrastructure on economic growth in China over a 20-year period of rapid income growth. The authors use a unique dataset that captures the historical placement of transportation networks, such as railroads, which connect major cities and treaty ports. By comparing areas closer to these historical transportation corridors with those further away, the study aims to determine whether proximity to transportation networks has a positive effect on per capita GDP levels and growth rates. The results show that proximity to transportation networks has a moderate positive effect on per capita GDP levels across sectors but no significant effect on per capita GDP growth. The authors provide a theoretical framework to interpret these findings, suggesting that factor mobility plays a crucial role in determining the economic benefits of infrastructure development. Specifically, they argue that capital is less mobile than goods, leading to higher inequality in better-connected areas but relatively small differences in per capita output and growth rates between well- and poorly connected regions. The study also discusses the limitations of the findings, including the possibility that the results are specific to the Chinese context or the unique policies of the Chinese government. However, the authors argue that their findings are consistent with broader literature on factor mobility and infrastructure effects in developing countries.This paper examines the impact of access to transportation infrastructure on economic growth in China over a 20-year period of rapid income growth. The authors use a unique dataset that captures the historical placement of transportation networks, such as railroads, which connect major cities and treaty ports. By comparing areas closer to these historical transportation corridors with those further away, the study aims to determine whether proximity to transportation networks has a positive effect on per capita GDP levels and growth rates. The results show that proximity to transportation networks has a moderate positive effect on per capita GDP levels across sectors but no significant effect on per capita GDP growth. The authors provide a theoretical framework to interpret these findings, suggesting that factor mobility plays a crucial role in determining the economic benefits of infrastructure development. Specifically, they argue that capital is less mobile than goods, leading to higher inequality in better-connected areas but relatively small differences in per capita output and growth rates between well- and poorly connected regions. The study also discusses the limitations of the findings, including the possibility that the results are specific to the Chinese context or the unique policies of the Chinese government. However, the authors argue that their findings are consistent with broader literature on factor mobility and infrastructure effects in developing countries.