About

Transport has affected economic development from the beginning of human civilization. Efficient transport is a critical component of economic development, globally and nationally. Transport availability affects global development patterns and can be a boost or a barrier to economic growth within individual nations. Transportation investments link factors of production together in a web of relationships between producers and consumers to create a more efficient division of production, leverage geographical comparative advantage, and provide the means to expand economies of scale and scope. Transport’s contribution to economic development includes the following:

  • Network effects—linking more locations exponentially increases the value and effectiveness of transport

  • Performance improvements—reducing cost and time for existing passenger and freight movements increase transport’s contribution to economic growth

  • Reliability—improves time performance and reduces loss and damage, thus reducing economic drag

  • Market size-access to wider markets adds to economies of scale in production, distribution, and consumption, thereby increasing economic growth

  • Productivity—transport increases productivity gained from access to a larger and more diverse base of inputs such as raw materials, parts, energy, and labour, and broader markets for more diverse outputs

Transport has affected economic development from the beginning of human civilization. Economic development focused on the confluence of transport systems. Most of the large cities grew up on natural bays and ports, and on rivers and lakes where transport was available. Romans built roads to unify and provide access to their far-flung empire. Geographic characteristics such as proximity to oceans, seas, and waterways, plains, mountains and the location of oases defined early transport systems (e.g., the “Silk Road” went from oasis to oasis, and city to city, where there were no reliable water or road routes). The industrial revolution generated new transport demands, which required higher volumes of coal, iron ore, and other materials; this led to canal construction that extended water transport, and to early railway development. Conversely the consequently developed Transport Systems accelerated the pace of Industrial Development 

Let’s Work Together