The development of transport system is basically improving the channels of movement between two or more areas. These developments are performed at the national and international levels under governments' financing and supervision to enhance national economic developments. The economic roles of transportation development are defined as costs' reductions in the transportation process. To enhance these cost reductions, transportation play significant roles in the economy, such as enabling additional volume of transportation and enhancing investment.
First, transportation enables additional volumes of transportation. A vehicle traveling on favorable roads could carry a more significant load with ease than it would carry in poor roads ( Bekrar et al., 2021 ). Hence, the cost per unit load declines, reducing transportation share cost in the overall production costs. Additionally, the operational time is reduced. A vehicle will move at a higher speed on a better transportation channel, enhancing safety, reliability, and efficiency. More products per unit time can be transported through several fast rounds.
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Additionally, a developed transport system enhances investments. While investing in infrastructure to improve modal capacity and terminals, various core strategies for promoting economic opportunities are generated. First, infrastructure development is itself a massive investment from the government or a privately-owned company. Also, more and larger traveling vessels are introduced, which expands the economies of scale, raising the economic output levels. Additionally, transportation enhances the movement of labor from households to firms leading to higher production. In these channels, more opportunities to start up new businesses are created ( Kalieva & Karelin, 2019 ). Therefore, investment opportunities develop from transportation.
Conclusively, transportation is an all-around factor affecting the economic standards of all nations. In every production process, transportation is a crucial factor that determines production rates through the entry of raw materials and labor factor. Good transportation enhances fast transportation of vast volumes of products. Transportation also enhances investments and job creation. More and swift brands of traveling vessels are produced to suit the new transportation system.
References
Bekrar, A., El Cadi, A. A., Todosijevic, R., & Sarkis, J. (2021). Digitalizing the closing-of-the-loop for supply chains: A transportation and blockchain perspective. Sustainability , 13 (5), 2895.
Kalieva, O. M., & Karelin, N. V. (2019). Marketing management in urban passenger transportation innovations. International Journal of Economics and Business Administration, 0 (2), 211-220.
