What is the relationship between transport and economic development?

Transport and economic development share a symbiotic relationship. The effective transport system facilitates regional development and economic growth. On the contrary, the rapid development of community increases the demand for transport services. In the setting of benchmarks and objectives for the economy, politicians must take into account the impacts of transport and economic development on economic health of the area. Critical infrastructure also determines the sustainability of the standard of living of the area. Shortening the amount of time requires an employee to get to work or to be transported and receive key production factors, increases productivity. The ability to approach resources and providing goods or services faster due to improved infrastructure makes the company more efficient and improves its ability to be competitive with companies outside the region or country where it is established.

Transport and economic development affects the gross domestic product (GDP) area. HDP is the value of all goods and services produced in the region or country. Communities with companies that are able to meet their consumption requirements quickly spend more of their revenue on products created by these companies. As a result, these businesses are able to expand or increase wages of their workers. Also because these companies have access to the resources needed for production, communities are able to use the transport system to export goods to other areas and must import less.

Companies are able to expand their physical boundaries due to improving the transport system or infrastructure. Citizens Annew you forced to live closer to your employment when a transport system is introduced that reduces the journey or shipping costs. As a result, sparsely inhabited areas are experiencing a population expansion that brings economic development through increased real estate and investment in business or enterprises that meet the needs or desires of new people.

Transport and economic development also improve the quality of life of citizens. The extension of the community reduces the concentration of people in a particular area. As a result, the pollution is reduced and the general population as a whole will increase. This brings a healthy and productive workforce and allows the region to invest more in continuing economic growth rather than spending a lack of resources due to the high level of population.