The Impacts of Road Infrastructure On Economic Development

CHINHOYI UNIVERSITY OF TECHNOLOGY
NAME: TAUZENI F MAPULANGA
PROGRAMME: BSBE 4.2
MODULE: NATIONAL INDUSTRIALIZATION STRATEGY
REG NUMBER: C17130487V
QUESTION
Land reform has brought more harm than good in zimbabwe.
Introduction
The road infrastructure is the driving force behind economic development and social
wellbeing through excellent production and private sector investment efficiency
(Achour & Belloumi, 2016; Banister & Berechman, 2001; Subhra & Nath, 2017). In
particular, road infrastructure development could cut travel costs, encourage
international investors and broaden the trade between common resources
(Management & Kingdom, 2020; Salinas-jiménez, 2004). road infrastructure
performs a crucial role in industrial development as far as social capital is concerned
and has evident spillover effects on regional advancement, factor re-assignment and
manufacturing efficient, which fosters the accumulation of industry, population and
the economy (Dynamics & Development, 2019; Fageda & Gonzalez-aregall, 2017;
Holl, 2004). The road infrastructure, on the other hand, can have an economic effect
only if certain economic requirements, requirements for investment and political and
institutional requirements are fulfilled. The extent of the effect on the domestic
economy and regional economics of the road system differs in rural and urban areas
and is subject to economic growth. Besides, in some situations, incompatibility might
occur between instant benefits and sustainable development. The size of its effects
over various periods may be incoherent. However, road infrastructure contributes
primarily to the development of the economy and productivity, but not continuously
over time. road infrastructure encourages economic growth, cuts in commodity prices,
offers access to global producers and consumer markets and makes global
manufacturing more cost effective by decreasing costs of road and increasing
accessibility (Agbigbe, 2016; Meersman & Nazemzadeh, 2019). Transportation
retains specialization efficiency benefits ( E.T. Verhoef et al, 1997; Venables &
Overman, 2014). Manufacturers need to be capable of contributing to their low-cost
locations from strategic partners and deliver goods and services to long-term clients to
get the full economic value of trade. Effective transport infrastructure has made
economic specializations in the US cost-effective, making US companies more
productive, a desirable place for foreign firms and more competitive global economy
producing goods and services (Trimbath, 2014).
Transportation Infrastructure Improvement

Highways Improvements and Economic Development Effects
Highways directly affect most major economic growth facets including efficiency,
manufacturing costs, and interprovincial trade. It is because most economic operations
either rely on or use highways in the transportation of goods engaged in trade
(Duranton et al., 2013). For cases where a road expansion improves road systems to
handle greater vehicles and volumes of traffic, the enhanced road system contributes
to greater efficiency for product flow through regions. Such an upgrade also enables
an area to handle output that depends on bigger vehicles to transport their goods and
materials. This can promote urban economic growth and benefit most enterprises and
individuals using the new road systems from cost reduction (Duranton et al., 2013).
Distribution Facilities
Distribution facilities enhance maximum local profitability. As distribution facilities
reduce congestion, they enable effective functioning of the economy of an area.
Goods move quite efficiently and it takes less time for individuals to perform work-
related commuting to areas where distribution facilities eliminate considerable big
truck traffic from crowded roads (Bartholdi & Hankman, 2011). Distribution facilities
can influence manufacturing geographical location by attracting production near
where they are located. When industries or warehouses establish in the area of
distribution centres they influence production geography. Increased productivity
through segmentation at a central location as a result of inter-industry transaction
effectiveness.
Connection of the Supply Chains

Global supply chains rely on vast freight networks to transport massive quantities of
goods. For vast quantities of goods to travel over several long distances across
different modes of transport, expanding world markets and enhanced competitiveness
in the supply chain depends on a diversity of infrastructure, utilities, and participants.
For effective global trade, it is important to engage infrastructure, services and
participants. The value of US foreign trade increased from $3.4 billion to $889 billion
(from 1990 to 2008) and rose by an average of 8 % per annum with growing
integration and globalization (U.S. Department of Transportation, 2018; Bureau of
Transportation Statistics, 2009: Rodrigu et al., 2016). This expansion has stimulated
the growth of transport assets such as marine, air and land border crossings to link
domestic US origin and destinations to foreign markets.
Linking Internal and External Markets
In the transport network, intermodal connectors, especially entry roads to ports and
connectors that link roads to each other, play an important role. The transportation
network is incomplete without them, and will not enable the effective movement of
goods and people (J.-P. Rodrigue et al., 2019). Because of their significance in the
transport network, they influence all facets of economic development and impact
other transportation infrastructure. Intermodal connectors enable the system to
function the way it should. Major roads to ports are intermodal connectors which
enable regions to access port facilities and thus lower the cost of producing industries
for companies using them (Laurence O’Rourke et al., 2015; Alex et al., 2015; Copper,
2018). By enabling greater access by heavy vehicles to ports, they facilitate
economies of scale in the flow of goods, reducing costs for the freight industries.
They promote reliability in the flow of goods and boost regional profitability when
they act as links in the transportation system.
Equitable distribution
Transportation is a socio-economic element of physical capital that facilitates the
mobility and equitable distribution of the elements of human capital. Not only does
transportation benefit the mobility of human capital, but it also facilitates the
equitable distribution of wealth across a given geopolitical region primarily in the
form of the mobile factors of production – labour, capital and entrepreneurship
(World Economic Forum, 2018). It also becomes particularly important to properly
examine how road networks (also located on land as a factor of production) fill the
vacuum of quays and docks that are for obvious reasons not available in hinterland
regions. We may therefore infer that regions close to the seaport have low economic
distance (J. P. Rodrigue et al., 2016) concerning goods brought in through
international waterways. As a result, regions further inland have initially limited
access to these goods and therefore require extensive logistics operations.
Generation of Revenue
The state in which the road network influences the number of the users thus is the
road is in bad condition, or has few lanes the number of users will relatively be fewer.
The better the road the more the number of users and the more the users the more the
revenues collected from the tollgate. This revenue will enhance economic growth
thereafter.
Enhance Foreign Trade

Road infrastructure gives the country access to international markets and typically a
low-cost way of transporting large items to and from remote areas. Enhancing road
infrastructure will therefore profit interregional international trade and contribute to
development in employment and regional efficiency. Such efficiency gains affect
profitability by increasing the transport of large quantities of goods to remote regions
and by expanding the consumer reach of businesses and regions using the roads
network (Bartholdi & Hankman, 2011). Airports affect several key elements of
regional economic growth and promote the rapid distribution of important products
and services. An airport benefits from delivery services and several professional
services. Minimum-fare airports attract business to a location and lead to growth in
employment, income and productivity in that region. Effective and reliable airport
services minimize delivery times and increase area and business profitability. The
provision of effective and reliable airport services will impact the position of a firm in
an area.

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CHINHOYI UNIVERSITY OF TECHNOLOGY

NAME: TAUZENI F MAPULANGA

PROGRAMME: BSBE 4.2

MODULE: NATIONAL INDUSTRIALIZATION STRATEGY

REG NUMBER: C17130487V

Transportation Infrastructure Improvement

Connection of the Supply Chains

Enhance Foreign Trade

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