Role of Transport

All economies and regions do not share the same level of mobility as most are in different stages in their mobility transition. The ability of a country, and particularly the more isolated communities within a country, to participate in trade depends on the quality of the transport and communication infrastructure that allows them access to the world trading system. If liberalization of trade can open new markets, appropriate transport infrastructure, timely delivery and the quality of services provided are essential elements in determining the competitiveness of products for global markets. The economic importance of the transportation industry can thus be assessed from macroeconomic and microeconomic perspectives Economies that possess greater mobility are often those with better opportunities to develop than those suffering from scarce mobility. * Indirect impacts related to the economic multiplier effects where the price of commodities, goods or services drop and/or their variety increases. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Globalization has changed this perception. Thus, from a general standpoint the economic impacts of transportation can be direct and indirect:

* Direct impacts related to accessibility change where transport enables larger markets and savings in time and costs. Like many economic activities that are intensive in infrastructure, the transport sector is an important component of the economy impacting on development and the welfare of population. Transport also carries an important social and environmental load, which cannot be neglected. Mobility is one of the most fundamental and important characteristics of economic activity as it satisfies the basic need of moving from one location to the other, a need shared by passengers, freight and information. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multiplier effects such as better accessibility to markets, employment and additional investments. Providing this mobility is an industry that offers services to its customers, employs people and pays wages, invests capital and generates income. The role of transport in economic development is usually discussed in relation to its contribution to the development of domestic trade.

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