Transportation Economics

Transportation Economics

            Transportation investment in both the private and the public sector has played a critical role in facilitating economic growth by increasing industrial productivity. Transportation involves the movement of goods or people from one geographic location to another. Transport can be through road, water railway or through the air. Transportation companies such as airways companies are making huge profits by offering transportation services. Many states continue to improve their transportation sector by coming up with new policies and solving the problems facing the transportation sector as part of economic growth strategy.

Major Facts

In the United States, railroads, canal systems, and highway system have contributed to the growth of industrial productivity and boosted trade (Smith,2015). The most commonly used means of transport is by use of vehicles because they are more affordable to most citizens. Developing and developed countries require sustainable means of transportation for the business transactions. Trade between different countries or between different continents is achieved by the use of air transport because of the long distances. Economics have to be applied in transportation to ensure that the means of transport used by citizens result in profits. Transportation infrastructure is also essential for every country. Transportation infrastructure includes roads, railways, and airports. A state with good transportation means is capable of experiencing rapid economic growth because it can easily export its perishable goods and import other goods from other countries. 

Transport is important for the growth of the economy of the country because transportation sector of the country provides job opportunities to the citizens.

 

 

Major Problem

Policies designed to promote development through transportation investment have become more sophisticated because the policymakers are targeting to come up with policies, which favor them to generate personal greater returns. Also, the policymakers are targeting transportation projects aimed at specific geographic locations, or aimed at specific individual firms.

Possible Solutions

The solution of this problem facing the transportation investment can be addressed by coming up with policies, which ensures that proper procurement process is followed when awarding the tender for projects involving transport infrastructure (Karklins,2016). There should be proper internal controls in the government to ensure that projects aimed at the development of the transportation sector are implemented at the right geographical locations and the tenders awarded to the companies that deserve. The technological solution can also be used to solve the problem of implementing the projects aimed at the development of transportation infrastructure. Another possible solution that can be used to solve the problem of corruption in awarding tenders concerning transport infrastructure is by use of theatre and drama to show the citizens adverse effects of corruption in the transport sector.

Choice and Rationale

The best solution to solve the problem of corruption in the transport sector is by coming up with policies, which ensure that legal procedures are followed when awarding tenders concerning transport infrastructure (Sikka,2015).  This is the most suitable solution because when legal procedures are followed, transport projects will be implemented in the right geographic location. Also, with the adherence of legal procedures, only the deserving firms will win the tenders to implement transport infrastructure projects.

Implementation

The solution can be implemented by forming an independent body to decide on the projects aimed at developing the transportation sector. The body should only include faithful individuals with knowledge on transport matters so that they come up with the right projects, which will see the transportation sector grow more rapid.

 

References

Karklins, R. (2016). The System Made Me Do it: Corruption in Post-communist Societies: Corruption in Post-communist Societies. Routledge.

Sikka, P., & Lehman, G. (2015). The supply-side of corruption and limits to preventing corruption            within government procurement and constructing ethical subjects. Critical Perspectives on           Accounting, 28, 62-70.

Smith, D. R., King, K. W., Johnson, L., Francesconi, W., Richards, P., Baker, D., & Sharpley, A.             N. (2015). Surface runoff and tile drainage transport of phosphorus in the midwestern            United States. Journal of Environmental Quality, 44(2), 495-502.