20世紀初台灣的鐵路建設可減少運輸成本，促進車站附近地區進行交易分工，從而增加農業產出水準。本研究利用1903年與1915年之間台灣兩千多個街庄的資料來測試此一假說。實證結果顯示，1903年以前啟用的車站在1903－1915年間對於提升其附近地區土地生產力的效果不顯著。不過，在1903－1915年間新啟用的車站附近地區，同期間之土地生產力上升幅度大於其他地區。再者，根據Cobb-Douglas農業生產函數的估計，在最靠近新啟用車站的地區，即使生產投入維持不變，1903－1915年間農業總產值仍可增加20%以上。這說明鐵路建設具有提升農業產出水準的效果。

Railroads constructed in early 20th century Taiwan reduced transportation costs promoting trade in the surrounding areas and improving the level of agricultural output. This study aims to test this hypothesis by utilizing a detailed data set consisting of more than two thousand villages in Taiwan surveyed around 1903 and 1915. The empirical findings show the effect of established stations that opened before 1903 on land productivity was insignificant during 1903-1915. However, land productivity in villages near new stations opening during 1903-1915 increased more than that of other villages during the same period. Moreover, based on the estimation of an agricultural production function with Cobb-Douglas form, the total value of output of the villages nearest to new stations increased more than 20% during 1903-1915 while production inputs remained constant. These results indicate railroad construction improved the level of agricultural output.