Transport Impacts on Economic Opportunities

Transport Impacts on Economic Opportunities

The expectation is that transport infrastructure investments will result in transport improvements in terms of capacity, efficiency, and reliability. The related lower transport costs, the shorter transit times, and business expansion make economic activities more productive and competitive.

Transport improvements can impact both commodity and labor markets by making resources, parts, customers, and labor more accessible. The outcome is an increase in the efficiency and market effectiveness of existing firms, leading to an expansion of output and employment. For a regional economy, this implies growth. Transport improvements can also influence the locational behavior of firms, attracting investments at locations of improved accessibility. Although investing in the improvement of the regional transport system is likely to have direct and indirect consequences on the regional economy, the spatial and sectoral distribution of these impacts is difficult to evaluate.