Transport, Trade, and the Benefits of Road Inv.DOCVIP

 DFID Transport Resource Centre Scheme Transport, Trade, and the Benefits of Road Investment C Dunkerley and J Hine Copyright TRL Limited September 2001 Subsector: Transport Theme: T2 Project Title: Transport, Trade, and the Benefits of Road Investment TRL Policy Group APPROVALS Project Manager John Hine Quality reviewed Phil Fouracre This document is an output from a DFID funded Knowledge and Research project, carried out for the benefit of developing countries. It is an unpublished report and must not be referred to in any publication without the permission of DFID. The views expressed are those of the authors and not necessarily those of DFID. The Transport Research Laboratory and TRL are trading names of TRL limited, a member of the Transport Research Foundation Group of Companies. TRL Limited. Registered in England, Number 3142272. Registered Office: Old Wokingham Road, Crowthorne, Berkshire, RG45 6AU. UK TRANSPORT, TRADE AND THE BENEFITS OF ROAD INVESTMENT 1. Introduction Transport projects are a major recipient of government and donor funds in many developing countries. They are recognised as a key factor leading to economic growth and reduced poverty. The analysis of the linkages between transport, trade and development is key in the formulation of transport policies and the efficient allocation of investment. This document examines the role of transport in encouraging economic growth, and compares its effectiveness with other policies available, in particular trade liberalisation, from an international perspective. The document is divided according to the methodologies employed to measure the effects of transport interventions: economic theory, macro analysis of transport investments and/or trade, and case studies. The effects of globalisation and transport investment in this context are also considered. The document concludes with the prevalent view about the e