Most of the developing countries lack good and improved physical infrastructure due to which these countries are facing problems of accessibility, mobility and transportation of goods and services. Poor …show more content…
Poor infrastructure not only affects the livelihoods of the people but also provides barrier against socio-economic services including health, education and other basic needs of life. The economic activities are halted and the countries face socio-economic downfall with low productions and decreased accessibility to local and international markets. Roads and highways not only provide easy access to services and markets but also have direct impacts on the regional incomes and outputs.
Road and Highway transport is another important source of transportation of goods and services within cities, states and countries but also across the borders with other countries. Road and highway networks provide smooth flow of traffic and enhance regional and international trade though increased mobility and easy accessibility to local and international markets. The flow of goods and services is ensured due to improved and upgraded roads.
Current studies have focused on the role of physical infrastructure within a country and have shown that improved road and highway networks lead towards progress of regional trade, economic development, cooperation and integration 1 . Roads and highways have …show more content…
The more the coverage of roads and highways within the regions the higher will be the chances of the region to accelerate its growth through access and utilization of all the available resources.
The importance of roads and highways on affecting diverse outcomes on the economy including trade and commerce cannot be neglected and their impact on the exports and imports of the country cannot be denied. Roads and highways within a country can foster trade is the main direct expected outcome. It is also obvious that enhancement in trade, exports and imports is often assumed to lead to more employment, higher wages, and similar positive results. To make sure that roads and highways positively affect economic activity of the regions and thus the country, it is important to know that they have the expected positive effect on the main direct outcome, trade which in this case is represented by the exports. This paper is an attempt to analyze all these possible outcomes which may result due to roads and highways within the regions. This paper will provide further evidence for the existing literature. Taking a unique case of