Essay Example on Transport and Development

Published: 2022-12-13
Essay Example on Transport and Development
Type of paper:  Essay
Categories:  Economics Public administration
Pages: 7
Wordcount: 1666 words
14 min read

Transportation is a major economic activity. Thus a lot of economists have been concerned about its connection with economic development. In the 19th and early twentieth century's, industrialization gave rise to a regional sectoral distinct pattern specialization that involved some regions being specialized in some industrial sectors. All the productions' main stages from the extraction of resources to final manufacture took place within the same region. However, new networks of transport, based on canal systems and mostly railways were important in the facilitation of increased specialization and concentration, liberating factories from being dependent on local resources and thus enabling them to serve a large market. There is an ongoing debate that has led to unresolved questions on whether the development of transport encourages economic growth. This debate is so much to do with the transportation advantages that result in investments. Underlying this debate between the link that exists between transportation and economic growth, there has been an argument indicating that there exists a relationship between GDP growth and transportation-related investment and measures. (Banister & Berechman, 2004). Despite the debates that surround questions of how transportation and economic development are related, this essay will evaluate how the transportation system may facilitate regional economic productivity focusing on high-speed railway system in China.

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Development of many industrial centers has been linked to the relationship position of a transportation network that reflects the wide tendency of significant trading settlements and transportation hub that are to be located at accessible points an example; in China transportation has enabled Shanghai and Shenzhen to be an importation and exportation point. Moreover, in China, the high-speed railway transportation has played a key role in ensuring its regional growth and exerting an indirect and direct economic effect in its cities. It is believed that this railway can enhance the regional ties, accelerate the flow of social resources, affect the regional accessibility and lastly, it can achieve a relocation and spatial agglomeration of economic activities. Extensive construction and rapid progress of high-speed railway have led to international discussion new round on the high-speed railway economic impact. (Rostow, 1990). High-speed railway transportation is said to have enhanced regional accessibility. It connects China's central cities in the countries as compared to traditional trains or other modes of transportation it is much faster. This train has enhanced regional accessibility which is still dependent on geographical position. However, this transportation system will improve the accessibility of every area and its outer zone. This railway is also said to have changed the regional location of economic geography. Its network has each of its dispersed sites into a whole thus strengthening regional location advantages which have led to producing great economic advantages. (Vickerman, 1997).

New economic geography relates to agglomeration advantages existence and regional disparities; it often takes a form of core-periphery within economic equilibrium system. New economic geography reduces that cost of transport and thus favoring manufacturing in small centers across an economic landscape. However, the high-speed railway development in China has influenced regional industries where they have increased. This transportation system plays a key role in manufacturing, tertiary and high tech industries. It is, therefore, a significant cause of regional industries structure optimization. High-speed railway nature of efficiency and speed has reduced transportation limitation. As a result, manufacturing layout flexibility has been improved. High-speed railways have removed the barriers that are as a result of a geographical concept that limits the market mechanism. It has greatly inhibited a lot of constraints and promoted high technology flexibility industry layout. Transportation is China and developments of tertiary industry are closely related. Where high-speed railway system has been in the front line to enhance regional land use diversification and efficiency. With the development of land, this railway's hub will become steady, and service facilities will become mature, new service centers and commercial forms will come into being thus undertaking a huge number of people and service sector demand.

Well, being, wealth measures and demand for travel affect economic growth. Example, income level growth, consumer goods purchase, continuing or higher education and life expectancy. It is said that a good transportation link enables a rapid supply of products from the service provider, manufacturer and finished product to the customers thus reducing the inventory cost. Transportation plays a significant role in economic growth facilitation within regions. This is through enabling movement of manufacturers, service providers, suppliers materials thus enhancing the economic development. However, the unbalanced economic development spatial distribution has enabled a great cross-regional movement great demand for materials and personnel in China. However, the high-speed railway's high carrying capacity has provided efficient transport supports economic development. Compression of space-time will thus help in forming a unified regional market. Radiation effect of this railway creates an economic belt or corridors along the railway.

Economic development and transportation relationship are viewed in a circular two-way symbiosis manner. The economic development expansion in a given area will lead to the demand for provision of improved transport which supports economic development. There has been a controversy in the railway's role in spurring economic growth. Some economists argue that the railway has a huge capacity and impact in all economic aspect. The economists attribute that railway affects economic development as it reduces transportation cost, market expansion and stimulates modern industries development. Introduction of the high-speed rail system has triggered economic growth in developed nations. High-Speed railway in Europe may boost regional development where it may benefit the metropolis. This is because huge elements may be concentrated in metropolis regions thus may improve central cities. (Vickerman, 1997) .High-speed rail system strengths the central and marginal areas through enhancing Europe ties. The center margin gap in between will be enlarged. (Schade, 2006).

There has been a key theme that suggests that transport system have a huge impact on the spatial economic organization pattern. Therefore the location value is determined by its market access that reflects on its geographical positions mostly relating to major routes of transport. High-speed railway system changes spatial structure among regions. It has speeded up space element circulation of modern tertiary industries. It has also expanded production elements of concentrations and dispersion of spatial differentiation; this will promote various forms of spatial organization. High-speed rail influence on the regional spatial nature is manifested mostly in two aspects. First, this railway system construction improves the condition of the location of the economic area or city group that can provide those areas with a siphoning effect on the surrounding area. Economic development of these areas will increase, and there this will result in formation of the economic belt. Secondly, cooperation may appear obvious, and there will be a division of labor in those regions along high-speed railway.

High-speed rail transportation system may close regional economic relationship. Where the regional interdependence boosts mutual promotion economic ties' restrictions among regional economy achievement of sustainable development relies on the relationship of the regional economy. The regional economic relationship includes regional trade, factor flow, and accessibility are in regional trade performance. Regional trade is said to be restricted by transport time and cost, and traffic freight volume. When an economy develops, demand for commodities increases but due to traffic restriction conditions, regional trade may not be achieved smoothly. However, In China, the high sped railway is alleviating the tense transportation situation. That large size and perishable products may be easily and quickly delivered through the use of the high-speed train.

Transportation contributes to the economy through job provision. It allows individuals to earn a living through the manufacturing of vehicles, train and driving them to allow for safe movement of people and products. Transportation-related a sector occupation contributes to a significant nontransportation industries' employment portion. They include freight moving workers, freight arrangement, and truck driver's workers in retail and wholesale industries. High-speed rail in China has created millions of service and another job across the region. It would be right to say that the high-speed rail of China is designed to meet the construction's company orders and create jobs for its workers.


Better transportation system connections lead to a reduced economic distance; this reduction is not only witnessed in costs but also in psychological inhibition and wasted time which impacts to frequent essential goods purchase on dangerous and uncomfortable and at times impassable routes with bad conditions. High-speed railway changes the geographical location, improves the conditions of regional traffic and accelerates the rate of flow elements. This affects the regional relations thus leading to economic development. The economic effect of the transportation system is different from regions. In industrial structure aspect, the effect of transportation shows a dual character where for example high-speed rail system may promote the process of regional industrialization; it also leads to a strong siphon effect on the medium and small sized example the city of Qingyuan. Although the there country has made a huge process in the improvement of traffic conditions, the duration between high-speed railway appearance and present is about 50 years that may be regarded as shorter regarding the fact that the country is a developing country.

The transportation sector is a critical factor in economic development and growth. This transportation sector is a wealth creating an industry where its inadequate transportation may limit the ability of the nation in utilizing its natural resources, distributing finished goods and food products, integrating the agricultural and manufacturing sectors and supplying medical, education and other infrastructural facilities. Therefore there is a need for improving and maintaining the existing transportation infrastructure for national wealth. This is because national wealth is the measure or the indicator or the domestic growth products of the economic growth rate.


Banister, D., & Berechman, J. (2004). Transport investment and economic development. London: Spon.

Vickerman, R. (1997). High-speed rail in Europe: experience and issues for future development. The Annals Of Regional Science, 31(1), 21-38. doi: 10.1007/s001680050037

Rostow, W. (1990). Theorists of economic growth from David Hume to the present. New York: Oxford University Press.

Schade, W. (2006). Assessing Economic Impacts of Large-Scale Transport Infrastructure Projects. Transportation Research Record: Journal Of The Transportation Research Board, 1960(1), 142-151. doi: 10.1177/0361198106196000118

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