Transport Infrastructure for Sustained Growth

Abstract

Transport — an increasingly important sector — must be seen in a dynamic context for its ability to promote scale economies, and improving the comparative advantage of goods and services which make specializations particularly valuable and is one of the key features of development in the world economy. By drastically reducing the trade cost, it has increased the volume of trade and radically altered its nature leading to the further diffusion of industrial revolution — which generally means a more spatial concentration of production with maximization not just in the volume of world trade and efficiency gains, but also in the overall social and economic optimization working through several ways — creating new investment opportunities, improving the manufacturing supply chain, opening new markets, trade and profit opportunities, alleviating poverty and with all this enhancing the total factor productivity (TFP) gains. Its dynamic stimulation and linkages to the economy are multiple and complex because it has a direct effect on production and consumption and generates developmental and spillover effects.