A. Does a country’s transport system affect its economic growth?
i. A strong linkage in a country’s transport sector and its economy. The direction taken by the economy of a nation is in most cases dictated by the transport system it puts in place. The mobility factor plays a very crucial role in the economy. Economic opportunities are likely to arise where transportation infrastructures are able to answer mobility needs and insure access to markets and resources. Because of its intensive use of infrastructures, the transport sector is an important component of the economy and a common tool used for development.
ii. There are several ways in which the economy is affected by an elaborate transport system. The linking of product source and markets is one of the ways. Opening up new markets and felling of people to work are also other ways that transport
B. What are some of the studies that link transport systems and economic development?
i. Several studies exist that investigate the link between a countries ecomic growth and its transport sector. For instance, Mačiulis et. al undertook a study with the aim of assessing the link between the transport sector and a nation’s economic competitiveness. The research looked at the main effects of Lithuania’s transport structure on the metropolis economy. The study was mainly focused on the analysis of the positive changes that happen on the economy of Lithuania. The fraction of the total economy under the transport sector was the main study variable. The analytic study approach was used to evaluate the positive changes occasioned by the transport system on Lithuania’s economy.
The study to clearly establish the changes that occur on Lithuania’s economy through analyzing the study variables. Additionally, the study was able to establish the harmful consequences of the transport sector on Lithuania’s economy. The major negative effects identified were pollution and congestion. The analysis of variables produced results that showed transport sector occasioned development in Lithuania’s economy. The main finding of the study was that transport system contributes largely to a country’s economic growth.
ii. David Hensher in 2012 carried out a research to evaluate the wider economy impacts (WEIs) of investment in transport in Sydney, Australia. Employment is the key variable in the study. The author uses it to evaluate the economic changes that arise due to input of resources aimed at developing the transport sector in Australia. The author uses observed information resulting from movement or relocation of employees as a result of a transport system to compute the changes to economy. Through such computations and analysis of the ensuing results, it is possible to evaluate the changes that take place in a country’s economy due to resource input in the transport sector.
C. After weighing evidence it appears that transport systems contribute to the development of a nation’s economy.
2. Research in support of the positive effect of transport to a country’s economy
A. First study in support
Mačiulis et. al carried out a study in 2009 to investigate the effect of transport on a nation’s competitiveness as regards its economy. The study employed analytical study approach.
the analysis of the study variables established that ant and improved transport system had the potential to spur development in the economy of a nation. The study findings established that the transport system had the potential to develop the economy of a nation.
iii. Analysis of the conclusions
a. Insufficient sample
b. But representative of the whole population
B. Second study in support
the research conducted by David Hensher in 2012 to evaluate the broad economy impacts of investment in transport in Sydney, Australia employs empirical evidence on employment redistribution to compute the economic change that occur on the the study area.
the key finding is that there does exist additional Wide Economic Impacts (WEIs) associated with redistribution of employment activities, as well as gains in labour productivity linked to agglomeration effects arising from these redistributions. These WEIs are close to 18 percent of the traditional user benefits calculated for transport projects.
iii. Analysis of conclusions
a. The paper does not reveal where else models used have been used successfully.
b. The study does not clearly show whether transport system has brought about increase in employment. However, the study finding does reveal some redistribution of people that would spur economic growth in the areas they move to.
3. The paper does successfully link transport with WEIs.
The paper does successfully link transport with WEIs. The research found out that that committing resources towards the development of the transport segment in Sydney, Australia has an enormous constructive force on the metropolis entire economy and that of the state. Various employment opportunities occur when people put in resources to develop the transport system. For example, various machines that will use the transport system will need machine operators. As a result, this adds to the amount of taxable employees. The overall effect is the increase of government revenue can then be channeled back to spur economic growth through development projects, trade subsidies among others.
A. The studies supporting the effect on a nation’s economy by the transport sector have good methodology. The samples are representative of the study population. The results are well presented and clearly in line with the study objectives.
B. Research does support the positive effect of transport on a country’s economy. This demonstrates that effective transport system is a crucial driver of a nation’s economy. A good system of transport and related infrastructure spurs economic development through job creation, opening up of markets, and linking the source of goods and services to the intended markets. Apart from the numerous employment opportunities that open up as a result of an elaborate transport system, other opportunities including ferrying of people (such as tourists) also ensue from good transport. Consequently, it will suffice to conclude that a good transport system offers an opportunity for economic growth of a nation.