ТHE ECONOMIC IMPORTANCE OF TRANSPORTATION SECTOR

Abstract

In a global economy, the economic opportunities and economic success of a country or region are linked to the mobility of people and goods, with the intensive use of information and communication technology. The connection between the quantity and quality of transport infrastructure and the level of economic development is obvious. The transport sector plays an important role in today’s economy and society and has a major impact on the economy of a country or region. An efficient transport sector is a critical component of economic development. Certainly, the development of the country's transport sector is an indicator of its economic prosperity and success. Developed transport infrastructure and connected transport networks are positively correlated with a high level of economic development. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive effects such as better access to markets, employment and additional investment. When transport systems are underdeveloped and unreliable, they can cause economic costs such as reduced or missed market opportunities and lower quality of life. Assessment of the socio-economic efficiency of transport projects should be mandatory when making a decision regarding their implementation. Transport is the basis of trade infrastructure, it has a significant impact on the competitiveness of certain industries in countries and regions. Imperfections in the transport system negatively affect the efficiency of the economy as a whole. Conversely, the accelerated development of transport infrastructure and the improvement of transport and logistics systems can have a significant impact on economic growth and ultimately on the population well-being. The quality of transport services has a great impact on the quality of people lives. On average, 13.2% of the budget of each household is spent on transportation of goods and services. The transport sector significantly contributes to the economy of a country by providing jobs for a large number of people involved in vehicle production, traffic safety control, vehicle management, which enables safe and efficient movement of people and goods. In short, transport networks are the heart of the supply chain and the foundation of every country's economy. The transport sector also facilitates international trade. In the conditions of globalization, where no country can fully function in isolation from other countries, the transport sector is crucial for the development of trade. Without adequate transport infrastructure, national and international trade would be almost impossible, and developing countries would find it significantly more difficult to integrate into the global economy. The aim of this paper is to point out the importance of the development of transport and transport systems for the economy at the national and global level.