Impact Of Transportation on Economy

By | May 28, 2010

Transportation plays vital role in increasing the economic growth. To compete with the real world, transportation is needed for transporting goods and services fastly and efficiently. Each transport sector will efficiently increase the economy on a whole. The present technologies are improving the speed, fidelity and even decreasing the cost making it effective to the goods or persons to contribute for the economic development.

New Generation technologies like computer design systems are used for improving the manufacturing systems which increases the productivity which leads to the economic growth. Transportation is the key aid for Importing and exporting which plays a important role in increasing the economy.

Firstly, Investment is made for efficient transportation system which has the capabilities of increasing the transportation capacity, efficiency and reliability which results in transportation cost savings, reliability improvement and business expansion. All the factors will result in increased productivity and increased competitiveness – leading to economic growth.

Economists define the economic growth as increase in per capita income. However all transportation is not same. But the ability to move goods and people effects the economy based on the distance they travel. High transportation costs will not result in the growth of the economy. The trade and the tourism sectors even contribute towards economy. Long distance trips are generally tourist trips or business trips which create a lot of income. Finally, it’s not the wealth of the nation that builds roads, but the roads that build the wealth of the nation  – as said by John Kennedy.