Quantifying the Impact of Development of the Transport Sector in Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 779-802 ◽  
Author(s):  
Rizwana Siddiqui
Keyword(s):  
Computable General Equilibrium ◽  
Public Investment ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Transport Sector ◽  
Transport Services ◽  
Long Run ◽  
The Government ◽  
The Cost ◽  
The Impact

An efficient transport system is not only a pre-requisite for economic development but is also important to achieve the objective of economic integration in the world economy. Insufficient transport infrastructure results in congestion, delay delivery time, fuel waste, pollution and accident1 which built inefficiencies in the economy and costs the economy 4 to 6 percent of GDP each year [Shah (2006)and World Bank (2007)], which can be saved by investing in transport services. Realising its importance, the government of Pakistan has initiated National Trade Corridor Improvement Programme (NTCIP) in 2005 to improve logistic and transport infrastructure so that it can fulfill the demand of economy more efficiently. This five years programme includes all sectors that improve performance of corridor-high way namely, road transport, railways, airports, and ships etc. The objective of the programme is to reduce the cost of doing business and improve quality of services. The study quantifies the efficiency of transport sector by evaluating the impact of public investment to improve transport services on the economy in general and on cost of land transportation in particular; i.e., cost of freight and passenger movement and cost of externalities such as congestion, air pollution and accident. The outcome of the study depends on how improved facility is achieved, i.e., who bears the cost and who benefits etc. This paper assumes tax financed public investment that not only change domestic price and demand, but also welfare and poverty. The issue is analysed in computable general equilibrium framework taking into account inter linkages of transport sector with rest of the economy. First, a social accounting matrix (SAM) is developed with a detailed transport module. Then, a dynamic CGE model is developed around this SAM and simulations are conducted for short run and long run analysis of public investment in trans port sector.

scholarly journals Assessing the impact of road transport infrastructure investment on economic development in South Africa

2017 ◽  
Vol 11 ◽  
Author(s):  
Anathi Hlotywa ◽  
Emeka A. Ndaguba
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Development Theory ◽  
Explanatory Variables ◽  
Endogenous Growth Theory ◽  
Long Run ◽  
Reserve Bank ◽  
The Impact

Background: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009.Objective: The objective of this study was to examine the relationship between road transport investment (ROTI) and economic development (ED) in South Africa. This article adopts the Harrod–Domar (HD) model of economic growth and development theory, endogenous growth theory and Solow–Swan neoclassical growth model.Method: Data were derived from the South African Reserve Bank, Quantec database and Statistics South Africa (StatsSA) between 1990 and 2014. It used time series, econometric models cointegration and vector error correction model (VECM) to analyse.Result: The results of the estimation demonstrate that the explanatory variables account for approximately 86.7% variation in ED in South Africa. Therefore, there exists a positive relationship between ROTI and ED.Conclusion: This study established a long-run relationship between phenomena and demonstrates the role of road transport investment on economic development in South Africa.

scholarly journals Factors Influencing CO2 Emissions and Strategies for Emissions Reduction in Malaysian Transportation Sector

2018 ◽  
Vol 7 (4.35) ◽  
pp. 823 ◽  
Author(s):  
Mustapa S.I ◽  
Bekhet H.A
Keyword(s):  
Co2 Emissions ◽  
Fuel Efficiency ◽  
Policy Instruments ◽  
Road Transport ◽  
Transport Sector ◽  
Road Transportation ◽  
Fuel Price ◽  
Transport Services ◽  
Transportation Sector ◽  
The Impact

The rapid urbanisation and economic growth has led to unprecedented increase in CO2 emissions, which led to a vital global issue due partly to the rise in demand from the transport sector. In the years ahead, the transport services demand is likely to increase further, which lead to intensification in CO2 emissions as well. The transportation sector in Malaysia contributes for about 28% of total CO2 emissions, of which 85% of it goes to road transportation mode. This has led to a great interest in how the CO2 emissions in this sector can effectively be reduced. Using a multiple regression model and datasets from 1990 to 2015, this study aimed to examine factors that influence the CO2 emissions in Malaysia. Key factors of CO2 emissions, i.e., fuel consumption (FC), distance travel (DT), fuel efficiency (FE), and fuel price (FP) were investigated for the road transport sector. The findings demonstrated that the impact of factors on CO2 emissions were varies in each technology vehicles. These findings not only contributes to enhancing the current literature, but also provide insights for policy maker in Malaysia to design policy instruments for road transport sector.

The Impact of Infrastructure on Growth and Development

2017 ◽  
pp. 84-113 ◽  
Author(s):  
Bertha Z. Osei-Hwedie ◽  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Infrastructure Development ◽  
External Financing ◽  
Key Factor ◽  
Vector Auto Regression ◽  
The Government ◽  
The Impact ◽  
Auto Regression

Infrastructure development is considered a key factor in promoting economic growth and attracting foreign investors for sustainable production and productivity. Conversely, inadequate levels of infrastructure constrain economic growth, a situation developing countries find themselves in. This requires the government to invest in infrastructure supplemented by external financing. This chapter, therefore, discusses how levels of infrastructure development affect economic growth in Ghana, since 1986 to date. The focus is on road transport infrastructure and its impact on economic growth under successive Ghanaian governments. Using the Cobb-Douglas production function and Vector Auto-regression (VAR) approach our analysis shows a positive relationship between infrastructure development and economic growth. This explains governments' improved allocation and expenditure on infrastructure development and maintenance in the 2000s. Ghana governments' attempts to plan and prioritize development of infrastructure, roads in particular, and create a culture of maintenance are targeted at raising the country's competitiveness and attractiveness to foster growth of all sectors of the economy.

scholarly journals Education and Poverty in Morocco: A Computable General Equilibrium Micro-simulation Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. p116
Author(s):  
Mohamed KARIM ◽  
Mohamed EL MOUSSAOUI
Keyword(s):  
Higher Education ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Simulation Analysis ◽  
Public Investment ◽  
Unit Cost ◽  
Public Spending ◽  
Micro Simulation ◽  
The Government ◽  
The Impact

The paper uses a micro-simulation computable general equilibrium model (CGE) to analyze the impact on poverty of public spending in higher education in Morocco. The model incorporates 7062 households derived from the 2007 National Survey on Household Living Standards (ENNVM). Two scenarios are simulated: a 100% reduction in the unit cost of higher education supported by households and a 50% reduction in public spending on higher education. In this study, it is assumed that the investment behavior of households is linked to the share of the unit cost financed by the government in higher education. The results show that the policy of exempting households from bearing any unit cost of higher education encourages them to invest massively in education, which leads to increasing their income and consequently improving welfare and reducing poverty and inequalities. On the other hand, the reduction in public investment in higher education affects negatively the behavior of households to invest in education which leads to a decrease in welfare, an increase in poverty and a rise of inequalities.

scholarly journals Modeling and trends of road transport development in eastern european countries

2021 ◽  
Vol 7 (1) ◽  
pp. 285-292
Author(s):  
Viktoriia Harkava ◽  
Olena Pylypenko ◽  
Oleksandr Haisha ◽  
Armen Aramyan ◽  
Volodymyr Kairov
Keyword(s):  
Eastern Europe ◽  
Road Transport ◽  
Freight Transport ◽  
Transport Infrastructure ◽  
Transport Sector ◽  
The Road ◽  
Original Language ◽  
Road Freight ◽  
Eastern European Countries ◽  
The Impact

The purpose of the research is as follows: analysis of the current state of functioning of the road transport sector in Eastern Europe and identification of key problems and trends in its development. Research methods: Methods of grouping, comparison and generalization, сorrelation analysis have been used to identify the dynamics of the main indicators of road transport in Eastern Europe. The method of correlation-regression analysis has been applied to determine the impact of increasing the length of roads on the turnover of the road freight transport and the number of employed population in this area. Results. It has been found that the increase in the employed population by 96% and increase in revenues from transportation and storage of goods, postal and courier services (turnover of the road freight transport - in the original language) in the field of road transport by 82% is explained by the change in transport infrastructure capacity by increasing length of highways.    

THE PROCESS OF THE REGION’S TRANSPORT SYSTEM FORMATION: MAIN FACTORS OF INFLUENCE

2020 ◽  
Vol 26 (10) ◽  
pp. 88-98
Author(s):  
M. Oborin ◽  
Keyword(s):  
Transport System ◽  
Intelligent Systems ◽  
Life Support ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Transport Systems ◽  
Transport Sector ◽  
Infrastructure Development ◽  
Transport Services ◽  
Classification Of Regions

The transport system is an important part of the infrastructure of the Russian Federation, the development of which contributes to economic growth and stability, guarantees the integrity of the state, national security and defense of the country, improves the life of the population, and brings the Russian state closer to the world economic level. The article examines the factors that influence the development of transport infrastructure in the region. Specific regional features and their significance in the development of transport infrastructure are identified, and a classification of regions and transport infrastructures is proposed. The relevance of the research topic is related to the fact that transport infrastructure is directly connected with the life support systems of the region, has a direct impact on the production sectors, and contributes to the effective functioning and development of the production sector. The purpose of the article is to study approaches and factors affecting the development of transport systems in the regions of Russia. Research methods: system, situational approaches, analysis and description of theoretical and methodological factors that determine the prospects for socio-economic development of the region based on the coordination of strategic goals of regional policy with the goals of transport infrastructure development. Results. The article considers different approaches, classifies the transport infrastructure of the region, and identifies specific factors that influence the development of the transport system. The analysis of the transport system of the Krasnodar territory was carried out and strategic directions for its improvement were determined. Conclusions. The results of the analysis have shown that despite the diversification of transport routes in the Krasnodar territory (water, rail transport), a significant share is accounted for by road transport. Digitalization is one of the most relevant and promising areas of development of the transport system. Intelligent systems will allow to provide innovative integrated transport services, depending on the constantly changing needs of the client. To improve the regional transport system, it is necessary to improve the types of road networks and develop a modern regulatory framework for the transport sector

scholarly journals Investment multiplier as a risk generator for economic security of the Russian Federation

2021 ◽  
pp. 1-8
Author(s):  
Vladimir Vladimirovich Eremin
Keyword(s):  
Public Investment ◽  
Economic Security ◽  
Investment Projects ◽  
Private And Public ◽  
The Government ◽  
Private Investors ◽  
The Cost ◽  
The Impact ◽  
Investment Multiplier ◽  
Multiplicative Processes

The subject of this research is the risks generated by multiplicative processes that accompany private and public investment projects in the sphere of ensuring economic security of the country. The author examines the inflationary component of multiplicative processes, which can cause rise in the cost of the investment projects implemented in the sphere of economic security, up to their cancellation. Particular attention is given to multiplicative transfer of income gains from purposefully developed industries to adjacent or loosely related industries. Such a transfer boost the competition for resources between the industries and complicates the implementation of projects in the sphere of ensuring economic security. The following conclusions were made:   - The structure of the process of interaction between the investment multiplier and investment accelerator is self-similar, which simplifies its modeling;   - Multiplicative processes may generate risks in sphere of ensuring economic security of the country;   - In order to substantiate the need for implementing large investment projects, the consideration of generated multiplicative processes is required;   - Modeling and taking into account the multiplicative processes allows transforming them from a risk generator into an instrument that amplifies the steps of the government and private investors on ensuring economic security of the country.   The novelty of this research consists in the approach towards analyzing multiplicative process as a risk generator, which complicates the implementation of investment projects by shifting the impact upon the trajectory of their development.      

THE IMPACT OF TRANSPORT ON THE COMPETITIVENESS OF NATIONAL ECONOMY

Transport ◽  
2009 ◽  
Vol 24 (2) ◽  
pp. 93-99 ◽  
Author(s):  
Alminas Mačiulis ◽  
Aidas Vasilis Vasiliauskas ◽  
Gražvydas Jakubauskas
Keyword(s):  
Driving Forces ◽  
Positive Impact ◽  
Road Transport ◽  
Transport Sector ◽  
Sustainable Transport ◽  
Transport Services ◽  
Negative Impacts ◽  
The Baltic ◽  
In Transit ◽  
The Impact

Transport has always been and remained one of the main driving forces in the economical development of any country including Lithuania. The paper assesses a positive impact of transport on Lithuanian economy in the light of the analysis of the main indicators measuring the success of the transport sector: the share of transport and warehousing sectors to national GDP (%) and the share of the export of transport services in GDP (%). It is also widely acknowledged that transport is going to play a crucial role in economic development in the future, especially in transit‐related transport like the Baltic States. On the other hand, the growth of transport, particularly in road transport, has had a significant impact on congestion, safety and pollution. Therefore, the task of transport decision makers is to find the key for sustainable transport development and reduction of a negative transport impact to sustain the transport sector as the engine of economy. The paper analyses both the positive and negative impacts of transport on economy and evaluates the possible ways developing the sustainable transport system.

scholarly journals Investment multiplier as a risk generator for economic security of the Russian Federation

2021 ◽  
pp. 1-8
Author(s):  
Vladimir Vladimirovich Eremin
Keyword(s):  
Public Investment ◽  
Economic Security ◽  
Investment Projects ◽  
Private And Public ◽  
The Government ◽  
Private Investors ◽  
The Cost ◽  
The Impact ◽  
Investment Multiplier ◽  
Multiplicative Processes

The subject of this research is the risks generated by multiplicative processes that accompany private and public investment projects in the sphere of ensuring economic security of the country. The author examines the inflationary component of multiplicative processes, which can cause rise in the cost of the investment projects implemented in the sphere of economic security, up to their cancellation. Particular attention is given to multiplicative transfer of income gains from purposefully developed industries to adjacent or loosely related industries. Such a transfer boost the competition for resources between the industries and complicates the implementation of projects in the sphere of ensuring economic security. The following conclusions were made:   - The structure of the process of interaction between the investment multiplier and investment accelerator is self-similar, which simplifies its modeling;   - Multiplicative processes may generate risks in sphere of ensuring economic security of the country;   - In order to substantiate the need for implementing large investment projects, the consideration of generated multiplicative processes is required;   - Modeling and taking into account the multiplicative processes allows transforming them from a risk generator into an instrument that amplifies the steps of the government and private investors on ensuring economic security of the country.   The novelty of this research consists in the approach towards analyzing multiplicative process as a risk generator, which complicates the implementation of investment projects by shifting the impact upon the trajectory of their development.      

scholarly journals Fuel Prices as a Factor of Shaping Profitability of Road Transport in Poland

2016 ◽  
Vol 13 (2) ◽  
pp. 44-52
Author(s):  
Łukasz Marzantowicz
Keyword(s):  
Road Transport ◽  
Transport Sector ◽  
Case Study Method ◽  
Cost Of Transport ◽  
Fuel Prices ◽  
The Road ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Abstract The goal of this article is to determine the relation between the price of fuel and the profitability of the company. For this purpose, the article defines the profitability of transport enterprises and points the source of the impact of changes in fuel prices on the profitability of companies in the road transport sector. The case of the ABC transport company shows the relationship between the costs incurred for the purchase of fuel and the cost of transport activities. To test the theoretical assumptions, case study method was used.

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