Economic Growth

The Economic Importance of Transportation

The transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that impact throughout the economy. When transport systems are deficient, they can have an economic cost in terms of reduced or missed opportunities. Transport also carries an important social and environmental load, which cannot be neglected. 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 enables to save time and costs. Indirect impacts related to the economic multiplier effect where the price of commodities or services drop and/or their variety increases.

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