Transportation as a Driver of Growth in Greece: Policy-Making Issues

Abstract

Greek authorities consider transportation investment as a driver of growth. However, this remains an unproven assumption. The economic growth of a country requires adequate transportation services. It is generally accepted that for a particular country at a specific stage of development, there exists a theoretically optimum amount of transport capacity. Nonetheless, the extent of these capacities and the rate of investment they require are widely disputed. Experts and policy makers recognise the importance of transport as an instrument of economic progress, but they lack the tools for making investment decisions that will cause appropriate economic growth. Few comprehensive analyses of the theory of normative transportation growth have been undertaken. This paper focuses on policy making issues and proposes certain elements of analysis that should contribute to clarifying the impact of transportation investments on economic growth. The discussion deals with transport system objectives, project viability and feasibility, and regional and national planning issues.