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Impacts of Transport infrastructure on Local economic development proposal

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Impacts of Transport infrastructure on Local economic development proposal

  1. 1. Ethiopian Civil Service University Institute of Urban Development Studies Department of Urban Infrastructure Provision Management Master’s Program Thesis Proposal on the Impacts of Transport infrastructure Provision on economic development. A Case study of Aweday Town of OROMIA REGION By: Nasir Ousman ID. No. ECSU1400862 ADVISOR: DR. RANAVINJAI SINGH A Proposal will be submitted to the Institute of Urban Development Studies Programme, Ethiopian Civil Service University, in Partial Fulfillment of the Requirements for the preparation of the thesis for the Award of a Masters Degree in Urban Infrastructure Provision Management Management. June 14, 2016 Addis Ababa, Ethiopia 1
  2. 2. Table of Content Title page Table of Content................................................................................................7 1.3. Objectives of the Study...................................................................................................................17 1.3.1. Main objectives of the study....................................................................................................17 1.3.2. Specific Objectives of the study...............................................................................................17 1.3.3. The research Questions...........................................................................................................17 1.3.The Hypothesis of the study............................................................................................................18 1.6. Significance of the study.................................................................................................................18 1.7. Scope of the study .........................................................................................................................19 1.8. Description of the study area..........................................................................................................19 1.8.1. Location of the Study Area.......................................................................................................19 1.7.2. Foundation ..............................................................................................................................20 1.7.3 Demographics...........................................................................................................................20 1.7.2 Topography...............................................................................................................................20 1.8. Organization of the Study...............................................................................................................21 1.9. The Limitation of the Study.............................................................................................................21 RESEARCH METHODOLOGY.......................................................................................................................37 3.0. Introduction........................................................................................................................................37 3.1. Operational Definition of Variables................................................................................................37 3.2. Research design..............................................................................................................................38 3.2.1. Research type..........................................................................................................................38 3.2.2. Time Dimension of the research..............................................................................................38 3.2.3. Research strategy.....................................................................................................................38 3.2.4. Research Approach..................................................................................................................39 3.3. Questionnaire.................................................................................................................................39 3.4. Interview.........................................................................................................................................39 3.5. Sampling Techniques......................................................................................................................39 3.5.1. Population Universe.................................................................................................................40 3.5.1. Sampling Frame.......................................................................................................................41 3.5.2. Sampling Unit...........................................................................................................................41 7
  3. 3. 3.5.3. Sampling Size...........................................................................................................................41 3.6. Sources of Data...............................................................................................................................41 3.6.1. Primary Data Sources...............................................................................................................41 3.6.2. Secondary Data sources...........................................................................................................41 3.7. Data Analysis and Interpretation....................................................................................................42 3.8. Data Presentation...........................................................................................................................42 3.9. Operationalization (Logical) Framework.........................................................................................43 3.9. Limitation........................................................................................................................................43 APPENDIX B...........................................................................................................................................55 INSTITUTES OF URBAN DEVELOPMENT STUDIES...................................................................................55 DEPARTMENT OF URBAN INFRASTRUCTURE PROVISION MANAGEMENT.............................................55 QUESTIONNAIRE (TO BE FILLED BY RESPONDENTS)..............................................................................55 About authors BA in economics From Arban Minch University and MA in Urban Infrastructure from Ethiopian Civil Service University 8
  4. 4. List of Figures Figure 2.1: Relationship between cost and output…………………………………….13 Figure 2.2: Price Bands…………………………………………………………………14 Figure 2.3: Contributions of infrastructure………………………………………………17 Figure 2.4: Effect of transport on growth through the formation of capital stock………18 Figure 2.5: Traditional view of the effects of transportation infrastructure investment....18 Figure 2.6: Modern link between transport investment and economic growth...………..19 9
  5. 5. Acronyms GDP Gross Domestic Product ERA Ethiopia Road Authority UNESC United Nation Economic and Social Conference WTO World Trade Organization AfDB Africa Development Bank SSA Sub-Saharan Africa 10
  6. 6. AU Africa Union UNECA United Nation Economic Commission for Africa AADT Annual Average Dial Traffic CIP Capital Investment Plan UNECAP UN Economic Commission for Asia and Pacific 1. Introduction Transport has a necessary role to play for Economic growth and Social development of a country. The existence of infrastructure in general and transport infrastructure in particular is very crucial to any nation’s economic and social development. The transport sector plays a role of outstanding importance in any national economy, both through its own direct contribution to GDP and employment as well as through the provision of services which are indispensable for the development of all other economic sectors. They comprise urban, national regional and international import, export and transit flows of goods and passengers. 11
  7. 7. According to the study taken by Feredic, 2005, and Charles, 2004, transport infrastructure is makes cities engines and occupies an important role in a country’s commercial life, industry and in the overall economic growth and development of any given economy. It is true that improved transport is basic to the development in social, political and economic fields. The cornerstone of any market based economy is an efficient system for supplying production and business inputs and distributing outputs. The movement of any economy to a higher level is dependent on making more efficient use of transport facilities (Tefera and Alemayehu, 1996:5). This evidences’ testify by Amadi, 2013 studies that identify the potential significance of transport development for investment, trade, growth and poverty alleviation has long been recognized. According to this not only does transport infrastructure facilitate the direct provision of services to consumers, it also provides intermediate inputs that enter into the production of other sectors and raise factor productivity. By lowering the cost and reducing the time of moving goods and services to where they can be used more efficiently, transport development adds value and spurs growth. Consequently, other Evidences testify to the fact that adequate and efficient physical infrastructure, in general and transport in particular, are among the most essential inputs for poverty reduction via direct and indirect channels (Tassew and Walter, 2004:139). In most developing economies that are landlocked country like Ethiopia Road transport is one of the most popular and important modes transport. In the case of Ethiopia, the physical and economic features as well as economic status of the population, make road transport the most viable mode of transport, the country must give priority to develop its socio-economic infrastructure. At present Ethiopia has no option but to develop and improve the quality and accessibility of its Transport network.(ERA, 1996) In other studies Gramlich, 1994 the services provided by the infrastructure capital stock for instance power, transport; telecommunications, provision of water and sanitation are fundamental to economic activity. Until the late 1980s, however, economists paid little attention to the role of infrastructure in either theoretical or empirical studies. Since then, interest in this 12
  8. 8. issue has begun to increase largely as a result of a series of papers by which ascribed the slowdown in US productivity growth to declines in investment in infrastructure. According to Mustapha, 2011 transportation is a critical factor in the economic growth and development. It is a wealth creating industry on its own inadequate transportation limits a nation’s ability to utilize its natural resources, distributes foods and other finished goods, integrate the manufacturing and agriculture sectors and supply education, medical and other infrastructural facilities. There is the need therefore to maintain and improve the existing transportation and build new infrastructures for a national wealth. The national wealth is the growth domestic products (GDP) which is an indicator or measures of the rate of economic growth. As my studies reveals that view of future expectation it is observed that commodity movement will increase in volume. The growth of commercial transport performance in the projection years seems to mismatch the growth in the economic performance. The results of the findings were used to suggest areas for further policy implications and area of investments. The government should now consider the policy and regulatory frameworks and give greater priority to investment in transport infrastructure. At the same time it should consider giving the private sector the chance to highly participate in the transport industry to fill the gap. So in order to fulfill this gap the government and private sector must be identify the current condition of transport sectors and the forecast for the future, this research helps. 1.1. Background of the study In most developing economies like Ethiopia including study town transport is one of the most popular and important in economic development at national and local level. In the case of Ethiopia, the physical and economic features as well as economic status of the population, make transport the most viable mode of transport, the country must give priority to develop its socio- economic infrastructure. At present Ethiopia has no option but to develop and improve the 13
  9. 9. quality and accessibility of its road network. The economic structure of countries cannot be seen at a glance as it is a much diversified concept in different terms According to few researcher between developed and developing countries, even between developed countries there is implicit and explicit difference in economic and social structure due to availability and presence of service infrastructure. (Olga I., 2003) This is justified that transport is an indispensable element of development and socio-economic growth. As engines of economic integration, transport infrastructure and service facilities constitute a precondition for facilitating trade and the movement of goods and persons. Long perceived as a tool for accessing national and regional trade in a radically changing global environment, transport infrastructure remains a pillar of development with a view to accelerating growth and reducing poverty. As UNESC, 2007 stated that the challenges of globalization, Africa is lagging significantly behind in the development of regional trade, particularly because of the lack of reliable and adequate transport. Indeed, the existing transport facilities for trade are completely outward-looking with the result that transport infrastructure and services have been little developed and the physical network poorly integrated. Thus the idea of transportation and economic development are interlinked. This is so because transportation is a derived demand that is driven by the needs and desires to attain some other final objective and thus as an economic development it stimulates demand from consumers and firms which in turn increases the demand for transportation services. (Kenneth and Samantha, 2008, as cited in Kalkidan, 2015) An economy that possesses high capital accumulation, moderate growth in its population and growth in technological progress is said to be in the path of economic growth. In other words, economic growth is a result of the rise in GDP. However the idea of development is wider than this. For a country to be developed, its economy should not only grow but should also be able to attain structural change. In other words economic development is concerned with both economic and social well-being of the society. Thus, growth is a necessary but not a sufficient condition for development which is concerned with both quantitative and qualitative changes in the economy. (Oyesku et al, 2013) 14
  10. 10. According to Seetanah, 2006, though decision makers and economists salute the importance of transport capital development in fastening productivity and economic development, yet this has received inadequate interest in the literature. Moreover most available research tend to focus on the economic effect of aggregate public capital at national and regional level and they have been mostly based on developed countries’ cases. Research using cross section data set for sample of country like ours has even more scarce. Overall, most of them tend to establish positive impacts of public and transport capital on growth not at country level they focusing at regional level means that they focused by comparing country to country. The Ethiopian economy continued its strong expansion in Fiscal Year 14 with real GDP growing by 10.3 percent. Growth was driven mainly by the services sector specially expansion of transport sectors. (World Bank Group, 2015) In the study by Yetnayet, 2012 transport infrastructure generally influences the interaction between or among intra and inters urban centers. It facilitates and ensures exchange role of urban centers through market linkage, because urban centers are interdependent. It gives more values to different land uses and urban activities such as residential areas, industries, businesses, service centers, administrative activities etc. Transport infrastructure also gives support to all urban utilities and ensures urban mobility including study town. 1.2. Statement of the problem Transport plays a crucial role in urban development by providing access for people to education, markets, employment, recreation, health care and other key services. Especially in cities of the developing world, enhanced mobility for the poor and vulnerable groups is one of the most important preconditions for achieving Millennium Development Goals. According to Cesar et al, 2010, transport infrastructure has a detrimental role in affecting positively or otherwise, the efficiency of the primary and secondary economic sectors that require input-output movements are very much dependent on this particular sectors. According to European Commission, 2008, transport infrastructure is a key element for the economic growth and development and it plays a fundamental role to achieve the Lisbon objectives to increase growth and jobs in Europe. (EUC, 2008) 15
  11. 11. As Robin et al., 2008 suggest that roads, bridges, rail lines, ports, and airports deliver economic and social benefits by connecting firms to international and regional markets, and by enabling individuals to reach water, fuel, schools, clinics, jobs, and relatives. Globally meeting of the infrastructure gap in Latin America and the Caribbean would require countries in the region to boost investment as a share of GDP from the current rate of 2% to 5.2%. After major investments in telecommunications two decades ago, the region lags in transportation and water infrastructure. Due to this gap they put more focuses toward the provision of transport infrastructure and telecommunication which lead the most driving force of economic development of the region. (Michael et al, 2013) Sub-Saharan Africa’s cities have strikingly underdeveloped urban networks, reaching only about 128 meters of road per thousand residents compared to 700 meters per thousand in the low income countries of the developing world. Urban connectivity is based on the concept of ready access to a one lane paved road capable of supporting year-round access by a bus service or equivalent motorized vehicle, such as an ambulance or a fire engine. (Robin et al., 2008) According to Ibrahim Worku 2011 Ethiopia is one of the countries of Sub-Saharan Africa and since 1993/94, the Ethiopian government has been implementing various reforms that have involved the processes of structural adjustment programs along with commercialization of agriculture, private sector development, and a number of related poverty alleviation programs. Successful implementation of the programs requires an efficient infrastructural system. In particular, transport infrastructure is supposed to create a network over a wide array of infrastructural facilities. In addition, the road transport sector is essential for developing countries for the reason that provision of other advanced means of transportation is expensive. For instance, Fan and Rao, 2003, as cited in Ibrahim Worku, 2011) citing numerous studies, indicated that public spending in urban infrastructure is one of the most powerful instruments that governments can use to promote economic growth and poverty reduction and among these services road transport sector is considered as the crucial one. Even though decision makers, different researchers and economists in the above addresses the importance of transport capital development in fastening productivity and economic development, yet this has received inadequate interest in case of local economic development. Moreover most available research tend to focus on the economic effect of aggregate public 16
  12. 12. capital at national and regional level and they have been mostly based on developed countries’ cases. Research using cross section for the sample local economic development is very scarce. Overall, most of them tend to establish positive impacts of public and transport capital on growth. It should be again this study mostly focused on the study of impacts of transport infrastructure provision on local economic development in the case study of Aweday town which is one of the reform towns in Oromiya Regional state. Generally, this study describes the current situation of transport infrastructure and overview the overall transport infrastructure provision in the town using existing data, analyze the impacts of transport infrastructure provision on local economic development especially by using household income, accessibility to the transport and Mobility of the residence is not researched before, so this researcher forwards provision of transport infrastructure and lastly the researcher forward the situation of transport infrastructure provision and management and recommend the results. 1.3. Objectives of the Study 1.3.1. Main objectives of the study The main objectives of the study are to conduct the impacts of transport infrastructure in development of Aweday town and to identify transport infrastructure provision and management challenges of Aweday municipality. 1.3.2. Specific Objectives of the study Based on the general objectives of the study above, the study seeks to achieve the following specific objectives To present the current situation of transport infrastructure of the town To overview the overall transport infrastructure provision process and identify the challenges of provision in the study town To analyze the impacts of transport infrastructure provision on local economy of the town To forward situation of transport infrastructure provision and management 1.3.3. The research Questions This study is intended to answer the following questions with regard to transport infrastructure in Aweday town. 17
  13. 13. What is the current situation of Transport infrastructure in Aweday town? What are the overall transport infrastructure provision process and major challenges during the provision of transport infrastructure in the town? What are the major impacts of transport infrastructure provision on the economic development of the town? What are the options exist for transport infrastructure provision and management? 1.3. The Hypothesis of the study There is no significant relationship between the socio-economic development of the town and condition of transport infrastructure. 1.4. Conceptual Definition Transport or transportation is the movement of people, animals and goods from one location to another. Modes of transport include air,rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles and operations. Transport is important because it enables trade between persons, which is essential for the development of civilizations. According to Ethiopian transport proclamation no. 468/2005 "Transport" means any transport service undertaken on road, railway and water by motor power carriers. (Federal Negarit Gazeta, 2005) Economic development refers to progress toward a community’s economic goals such as increased employment, income, productivity, property values, and tax revenues 1.6. Significance of the study Although transport infrastructure has significant role in the development of the town and cities, Aweday town is facing the challenge of accessibility and affordability of the transport infrastructure in Aweday town condition of the town is subtropical (Weina Dega) and has diverse population If there are accessible transport infrastructure provision; they would decrease problems related to transport infrastructure provision and maintenance. But in the town the Transport infrastructure network is poor in quality and even not exist some parts or not properly maintained, and accessibility especially in asphalt, Gravel, and cobblestone Transport 18
  14. 14. infrastructures. Generally Transport infrastructure improvement and provision does not given attention by the Regional Transport infrastructure Authority and the town itself. This study has the following significance: For an academic purpose for future preparation of research related to transport infrastructure provision  Guide urban actors in Aweday Town how they can improve and plan the transport infrastructure.  An input for the preparation of mobility network and transport infrastructure follows during master plan preparation time of the Town plan.  It helps the town administration to access the transport infrastructure  Recommend and increase awareness about benefit of having improved transport infrastructure for decreasing time of travel and providing goods and services on time to and from the town. 1.7. Scope of the study The study will have both conceptual and spatial (geographic) bounders. Conceptually, it will focused only impacts of transport infrastructure provision on development of the town. This Study will be focused geographically only the impacts of transport infrastructure provision on development of Aweday town so it can be include only the area under the Aweday Municipality. 1.8. Description of the study area 1.8.1. Location of the Study Area Aweday is located in East part of Ethiopia in Oromia region East Hararge Zone at a Distance of 510 km from Addis Ababa and 13 Km from Harar the Harari region capital Harar. And it is 38km far from Dire Dawa in South West and 115 km far from Jijiga town of capital city of Somili Regional States. The town is bordered by Haromaya Woreda in the north, in the south still Haromaya Woreda, Harari Regional State in the east and by the Haromaya town in the west. Aweday town is located the main Transport infrastructure that cross the country and pass to the capital city of Somali land Hargeysa so it is busy Transport infrastructure due to the above 19
  15. 15. reason. And its total area of its that covered by structural plan 2006 is 2405km wide at present. (Aweday, 2006) 1.7.2. Foundation Before its establishment, the area of Aweday was covered with forest and Didimtu Lake according to information from elderly. The city was founded in 19th century as a village and the main factors for its foundation includes its problems of rob and military camp established in Hammeresa, due to the above region traders of Chat in order to survive their trade they gone to Didimtu area and began to exchange chat there and establish the town of Aweday today. Aweday town has got its present name from the one person who living there for many years and died there his name is known as waday the name Aweday derived from this person name community living in the town. From its beginning it started to lead under Haromaya town as a one kebele up to 1991 EC. But after many series question raised by the people in 1991 Oromia Development Bureau gave its own structure to lead itself in 1999 EC Oromiya Urban Development Office take this town as one of the town which is classified it as one of the reform towns in the region. 1.7.3 Demographics The first, second and third censuses carried out at national level in 1984 ,1994 and 2007; put the population size of Awaday town at 3,486 and 3,925, and 7,686 respectively. The Analytical statistical report released by CSA in 2011 provides population size at 9,096. Based on the trend observed in the past, and incorporating the population from the expansion area the current (2012) population size of the town is reckoned to be close to 23,863 including the population of expansion area. (Aweday CIP, 2006-20) 1.7.2 Topography The topographic feature of is morphologically apart from volcanic and tectonic activities. There is no hazardous area in the town. Aweday Town has ups and downs (undulation features). In its topography. The average altitude of built able area is about 1960-2000 meters above sea level. And longitudinal location of the town is 9° 21' 37.38" N 42° 2' 45.94" E. (Aweday, 2003) 20
  16. 16. 1.8. Organization of the Study The thesis will have five chapters. The first chapter will introduce the background of the study, problem of the statement, objectives of the study, research questions, and significance of the study, the scope of the study, conceptual definition, description of the study area, and limitations of the study. The next Chapter will deals with the review of related literature. The third Chapter will describes the research design. The fourth chapter will focus on data analysis, interpretation and presentation. Finally, in the fifth chapter conclusions and recommendation of the research report will be presented. 1.9. The Limitation of the Study In the way of conduction of this Research we will have come across many problems. Some of these problems include:- Shortage of time to collect all data from all peoples of using and participating all people will be difficult  There will be Shortage of finance  There will be Lack of organized and adequate data on transport infrastructure provision in the Aweday town  In order to come up the limitation above the researcher will use the following methods these are:  Sampling methods which is used in the researcher method and purposively method which is used to identify and represent the whole peoples of the study area  Since the finance is not that much is enough to use the whole people the researcher will use In order to come up with the above limitation researchers uses the following methods: - In order to solve the shortage of finance the researcher uses the sampling method and purposively selected sector which can represents the study areas - In the case of lack of data he uses data of different offices such as Transport office, 21
  17. 17. Traffic management office, Municipal office and Mayor office then organizes the data for analysis. 2. LITERATURE REVIEW Transport Infrastructure is important for the services it provides. It is an important input to the production process and raises the productivity of other sectors. This infrastructure connects 22
  18. 18. goods to the markets, workers to industry, people to services and the poor in rural areas to urban growth centers. Consequently, lowers costs, enlarges markets and facilitates trade. Thus, infrastructure provides services that support economic growth by increasing the productivity of labor and capital thereby reducing the costs of production and raising profitability, production, income and employment. 2.1. Definition of some Key concepts used in the topic of the study Major concepts used throughout this paper. Transport refers to the supply system enabling people and goods to move or be moved within a defined area. Urban transport refers to such a system at the level of an urban or metropolitan area. A transport supply system typically includes infrastructure (fixed installations), vehicles and operations; operations refer to the way in which infrastructure and vehicles are operated, as well as the enabling environment such as financing, legal frameworks and policies. (Torrisi, 2009) Transport infrastructure includes linear installations (such as roads, railways and waterways) and terminals (such as railway stations, bus stations and trucking terminals). Transport services include bus systems, taxi fleets and rail services. Public transport refers to transport services available to the public (as opposed to private transport). Public transport services can be supplied by public or private operators, with or without predetermined schedules, routes, stops, fares and subsidies. Private operators can be formal (officially recognized by the public authority) or informal, and the state of informality can in turn range from being ‘illegal’ and unregulated to being ‘legal’ and regulated. Para-transit refers to public transport services supplied by informal private operators running small to medium capacity vehicles (including motorcycle taxis, collective taxis, and mini-buses). Non-motorized transport (NMT) refers to human powered modes (mostly walking and cycling); motorized private transport refers to all other private modes (e.g. motorcycle, car, pickup truck). Mobility refers to a group of users' ability, tendency and/or need to move, resulting in a transport demand. Mobility therefore primarily refers to the demand side of a transport system.Transport infrastructure and services are supposed to answer to existing and future mobility needs. 23
  19. 19. Accessibility according to Rodrigue 2006, “Accessibility is defined as the measure of the capacity of a location to be reached by, or to reach, different locations. Therefore, the capacity and the arrangement of transport infrastructure [and services] are key elements in the determination of accessibility.” 2.2. Basic Theoretical Impacts of Transport infrastructure provision on economic development The theoretical foundation underlying the study is that provision or improvement of transport services results in reduction of transport cost and/or travel time which in turn lead to increased production. Improved transport, therefore, promotes social and economic development by increasing mobility and improving physical access to resources and markets (IFAD, 2001). Fromm (1965), World Bank (1994) and SACTRA (2000) treat transport as one of the factors of production. It is universally accepted that the provision or improvement of transport services results in reduction of transport costs. As transport cost decreases, the factor prices fall resulting in the increased demand for input use or more output supply according to microeconomic theory (Varian, 1992, 1999). Bhalla (2000) has similar argument. He goes ahead by saying that the marginal cost decreases as a result of improved transportation. IFAD (2001), HMGN (1997) and World Bank (2001) emphasize the role of rural transport for socioeconomic development. There exists a massive theoretical literature about transport and development (Fromm, 1965; Forkenbrock, 1990; World Bank, 2001; Baum and Korte, 2001, Sadoulet et al, 1995; Kessides, 1993; Banister et al, 2000; Berechman, 2001; Vickerman, 2001; Quinet et al, 2004; Bhalla, 2000; Polack et al, 2000; SACTRA, 1999 & 2000; Schelling and Lebo, 2001; Gannon and Liu, 2000; McCarthy, 2001; Boyer, 1998; Cole, 1998; Button and Pearman, 2001; Boyer, 1998; Cole, 1998; Button and Pearman, 1985; Button, 1993; Dicky et al, 1980; OECD, 2001). The authors recognize the important role of transport for social and economic development of a country. I present reviews of some of the works below. As the cost of transport declines, the production cost falls which may result in increased production. Similarly when travel time is saved, more labor is available for production, which is the same as an increase in labor supply, resulting in increased production. So the overall activities expand with the provision of transport services. Investment in the transport sector can 24
  20. 20. improve access to economic opportunities by reducing transport costs and travel time. If markets are reasonably competitive, this can result in lower prices for freight and passenger services. This in turn can lead to lower prices for product and consumer goods, a spatial extension of the market for production and consumption goods, higher personal mobility, and general higher level of socio-economic activities (Schelling and Lebo, 2001). Figure. 2.1. Relationship between cost and output According to Bhalla (2000), the marginal cost decreases as a result of improved transport services leading to expansion of production. Let me denote the marginal cost by MC1 without the road situation. With the opening of the road, the transport cost decreases which results in a downward shift of the marginal cost curve from MC1 to MC2. This in turn results in a total cost saving of an area abcd for the certain level of output Q1 and an increase in output from Q1 to Q2 (Figure 2.1) (Bhalla, 2000). Local farmers can benefit from the road transport because the cost of transporting agricultural products to markets is reduced and the distance to breakeven locations is extended. This might lead to more intensive cultivation and increased production of cash crops. Road transport can 25
  21. 21. further reduce production costs by lowering prices of delivered inputs, including equipment and information (for example, through better agricultural extension services). The ultimate effect is increased net farmgate prices and increased farm incomes although the extent to which this happens depends on the competitiveness of the transport service market. All weather passability of the road not only increases income from farming activities, but also makes prices more stable and thus enables the poor to improve risk management and risk coping. Figure 2.2. Price Bands Source: Adapted from Sadoulet and de Janvry (1995) Thus transport is the most important factor, which contributes to reduce the width of price bands. As portrayed in Figure 2.2, there is a difference between the purchase and sale prices for the rural households with poor access to road. The provision or improvement of transport services reduces the transport cost of purchased and sale goods, which results in increase in farm gate prices of agricultural products while decrease in the farm gate prices of agricultural inputs and other consumer goods. The width of price band reduces due the improved transportation services so the rural people get double benefits (Sadoulet and de Janvry, 1995). Forkenbrock (1990) mentions that transportation services generate benefits by serving as an economic tool used in transporting goods and people. The benefits of transportation investments 26
  22. 22. are strictly related to reductions in transportation costs. These investments foster economic development by increasing net local income through cost reductions that exceed the cost of such investments. A series of important issues should be taken into account when examining the extent to which a transportation investment contributes to economic development. Transportation infrastructure is one of the principal policy levers that state and local governments can use to attract businesses and investors. The reason is that better accessibility to materials and markets contribute to a comparative advantage. In order to place the relationship between transportation investments and economic development in perspective, certain economic principles related to public investment are presented as a means for stimulating private-sector activity. These principles can apply as a sound conceptual base to the problem of how transportation investments can best be used to foster economic development at state and local levels. Transport infrastructure investment, however, acts as a complement to other more important underlying conditions, which must also be met if further economic development is to take place. Additional transport investment is not a necessary condition, but acts in a supporting role when other factors are at work. In developed countries, where there is already a well-developed transport infrastructure network of a high quality, further investment in that infrastructure will not on its own result in economic growth (Banister and Berechman, 2001). Most factors of production are positive determinants of aggregate output. Increases in the stock of physical capital, for example, are typically associated with increases in aggregate output. Thus, economic growth occurs when more factors of production become available and are put to use. (Fedderke, et al, 2001) Having developed a basic analytical framework within which to consider the infrastructure growth relationship, discussion now proceeds to the positive potential linkages between infrastructure and economic growth. 2.3. 1. THE ECONOMIC IMPACT OF URBAN TRANSPORT The principal role of transport is to provide access between spatially separated locations for the business and household sectors, for both commodity (freight) and person movements. For the business sector, this involves connections between businesses and their input sources, between businesses and other businesses, and between businesses and their markets. For the household 27
  23. 23. sector, it provides people with access to workplaces and education facilities, shops, and social, recreational, community and medical facilities. (Eran, 2008) Moving essentially from Barro (1990) and Aschauer (1989) many studies analyzing the relationship between infrastructures and the economic development have been realized. On this field there is a broad spectrum of theoretical viewpoints some of them diametrically opposed to one another. A general consensus is achieved around the idea that basic infrastructure facilities are important features related to economic performance. Apart from this main ideas opinion differs greatly: both magnitude and causality remain subjects of debate. Nonetheless, as research in the field progressed, disputes over this high impact of infrastructure arose. Gramlich (1994), for example, pointed out that Aschauer (1989)’s approach was affected by several problems. In relation to the magnitude of infrastructure impact he highlighted that generally a positive public capital elasticity forces the choice between increasing returns of scale and large factors rent, and that Aschauer (1989)’s work result in “pretty stratospheric estimates of the marginal product of government capital” (Gramlich, 1994, p. 1186). According to a recent African Development Bank (AfDB, 2013) Programme for infrastructure Development in Africa (PIDA) report the continent’s large infrastructure deficit is holding it back with road access rate of only 34%, compared with 50% in other parts of the developing world, while transport costs are 100% higher. Poor infrastructure slows Africa’s per capita growth by 2% annually. Transport infrastructure impacts on both transport users and nonusers. It is therefore necessary for the merits of transport proposals to be judged by their potential effect on all members of society and not only on transport users, as was traditionally the case. This implies that effects other than transport effects should also be studied. Figure 2.3 illustrates the mechanisms on how infrastructure in general and transport in particular affects economic growth and quality of life (Kessides, 1993). For example, provision or improvement of transport services reduces the cost of transportation and travel time directly which results in structural change through economic diversification, technological innovation, changes in structure of production and consumption, personal welfare, labor productivity and wealth. This will be finally reflected in reductions of costs of the most directly productive 28
  24. 24. activities (DPA) such as industry, agriculture, and services that use transportation services as intermediate inputs. Figure 2.3: Contributions of infrastructure Source: Adapted from Kessides (1993) The mechanism is as follows: 29
  25. 25. Provision of transport services ⇒ Transport cost ↓ ⇒ Cost of the DPA ↓ ⇒ Profitability ↑ ⇒ Investment ↑ ⇒ Employment ↑ ⇒ Output ↑ The development of transport contributes to economic growth through the formation of capital stock (Figure 2.4). The development of transport influences capital stock in both private and government sector. Real capital is formed in the transport sector and some private-sector capital is also invested because of the development of transportation (Baum and Korte, 2001). This means the investment in transport infrastructure crowds in private sector investment in the initial stage of development. Figure 2.4: Effect of transport on growth through the formation of capital stock Source: Baum and Korte (2001) 30
  26. 26. Based on the traditional view, investment in transport infrastructure have two effects viz. direct effects such as relocation, land rent and urban form, consumer and producer surpluses, and production and transaction cost savings to be brought about by changes in accessibility, and indirect effects such as externalities and multiplier effects (Figure 2.5). Figure 2.5: Traditional view of the effects of transportation infrastructure investment Source: Berechman (2001) In fact the link between transport investment and economic growth is rather complex and multi- dimensional. It is important to accommodate this complexity and causality in analysis and recognize the multidimensional nature of the links between transport, location, development and the many other factors relevant to our understanding of these processes (Figure 2.6). The main idea underlying the relationship shown in the figure is that for transport-induced economic growth to transpire, it is necessary that various economies be present in various markets. The principal ones are firms’ agglomeration, transport network, labor market, land market and environmental quality enhancements. Merely improving accessibility which translates into reduced travel time and higher travel volumes would not be sufficient to generate growth (Banister and Berechman, 2000). 31
  27. 27. Figure2.6: Modern link between transport investment and economic growth Source: Banister and Berechman (2000) In Ethiopia different researcher done on positive impact of Road transport infrastructure provision on economic and social development, among this Asnake, 2006, on Road Frieght Transport in Ethiopia with special emphasis on Addis Ababa – Djibuoti Corridor, 2.3.1. The Contribution of transport for economic development The contribution of transportation to a country's development is high. Its share of contribution to the GDP of a country is incontrovertible, though the nature and extent of the contribution varies from country to country. Transportation plays a big role in what is known in both national and international trade as invisible trade. It has been confirmed that its share in this respect in many developed countries is as high as 26%. The role of transportation in the investment sector varies between the developed and the developing countries. Because a good part of infrastructure development has been taken care of in the developed countries, most of the investment there focuses on automotive equipment, whereas the investment in the developing countries focuses on infrastructure development. Of the total investment expenditure of developing countries, 30-35% 32
  28. 28. goes to infrastructure development, whereas in the developed countries the share of expenditure for same is only 15-20%. Currently the cost of transporting goods in Sub-Saharan Africa (SSA) is the highest in the world (AfDB, 2013). Though wages are very low, the lack of reliable provision of roads in all regions of SSA, seaports and other transport infrastructure makes it is extremely difficult for African industries to compete in the global market. For example, African seaports are small by world standards, poorly equipped and are associated with high costs due to outdate port-management structures compared to ports in other developing regions, poor productivity and lack of economies of scale. Container traffic in Africa, with the exception of South Africa, is still at an early stage of development. Air transport remains also critical to Africa’s integration and participation in an increasingly competitive world air transport market. However, inadequate airport infrastructure and the unsatisfactory performance of many indigenous air transport operators remains a major problem. According to a recent publication, the level of international connectivity, measured in terms of the number of airports receiving direct international service, is generally in decline with some exceptions. Railways have the potential to transform the continent but currently play an insignificant role in Africa with rail density of 2.8km/1000km2. The rail network is characterized by limited interconnection with very little electrified outside South Africa, this is also true in case of our countries including study town. (Hoyle et al, 1973) Investment in transportation infrastructure is critical to sustained economic growth. Mobility studies show that transportation is absolutely essential to economic productivity and remains competitive in the global economy. An international study found every 10 percent increase in travel speed; labor market expands 15 percent and productivity by 3 percent. (Barrister and Berechinan. 2000) 2.4. Classification of Transport Modes Five transport modes have been witnessed so far in the history of humanity's technological development: namely, road transport, water transport, rail transport, air transport, and continuous flow system. Road transport consists of several types or modes, which are divided into two main sub-categories: motorized and non-motorized. Water transport is divided into local and international (marine) transport modes. Local transport mode includes river, lake, and canal transportation as well transportation on huge dams. 33
  29. 29. Marine transport includes both cargo and human transport across seas or oceans between the ports of the different countries. Rail transport, which started about the time of the Industrial Revolution after the 1810s and 1820s, has been serving the world for nearly 200 years. There are many types of rail transportation. The first phase featured a kind of train drawn by horses, followed by steam- powered train, followed by the street car. Next came the different types of rail transport modes: the regular surface railway, metro or subway, monorail, guided bus, trolley bus etc. The rail transport system is classified as Light Rail Transit (LRT) and Heavy Rail Transit (HRT). The other transportation mode, fairly recent in appearance and modern in its constitution, is air transport. The appearance on the scene of air transport is historically linked to the use of balloons for navigational purposes. But the basis for the development of the world's fastest transportation system is the series of experiments undertaken by the Wright Brothers. Like the other transport modes described above, air transport is divided into domestic and international, on the one hand, and human and freight transportation on the other. Presently the world uses airplanes ranging from the smallest, accommodating only one person (the pilot), to the largest, accommodating 350 people and traversing long distances across lands and oceans to connect the different parts of the globe. (ERA, 1996) 2.5. A Brief History of the Development of Modern Transportation in Ethiopia Modern transportation in the Ethiopian context, the reign of Emperor Menelik holds a cardinal place. According to some writers, the idea of road construction started with the reign of Emperor Tewodros, when he used manual labor for clearing land for a pathway across which to haul his canon, the Sebastopol, to Mekdela. Since, however, the purpose of the roadway had nothing to do with serving the public, let us limit our observation to the fact alone and pass on to the reign of Menelik. Using his close relationship with the government of Austria, Emperor Menelik imported the roller, one of the technological products of the time, circa 1885-1887, Gregorian calendar. But the building of the roadway itself on which this roller was operated carried out by clearing the forest and leveling the land with a labor force drawn both from the governments army and the public. Documents reveal that the first bridge to be built was that across the Awash, which took 34
  30. 30. place in 1886/87. According to the records, after the roller was transported to Addis Ababa, Menelik had a 45-Kilometer stretch of road built through the combined labor of the military and the civilian population, while the roller was simultaneously put to work on this same road, but it did not take long for the machine to break down and be abandoned, never, it appears, to function ever after. Different historical sources also point out that the first automobile came to Ethiopia in 1907/08, Gregorian Calendar, following which other cars with different models were imported from England and Germany. The sources also point out that in 1908, Gregorian calendar; several trucks were operating in Dire Dawa during the dry season. Given the cultural disposition of the society at the time, those who were able to operate cars seemed to have satisfied themselves with the idea of just driving the respective vehicles they owned, traffic laws and regulations being alien to them until the years between 1915 and 1917.Gradually, however, oral directives and orders were given both to vehicle operators and pedestrians. (Mekete, 1983) Although the Italian invasion of 1935-41had inflicted damage on the country, it nevertheless had its own contribution to the expansion of modern transportation. It has been reported that public transportation, but especially taxi and bus services, started in Ethiopia during the Italian invasion. (Ibid) Although, according to historical records, the first motor vehicle operator was Emperor Menelik himself, the first operator with a legal driver's license was Negadras Tesemma Eshete, who learned the skill while he was in Germany. Regarding the promulgation of transportation codes, the laws promulgated in 1934 and 1935 (Ethiopian Calendar) are considered the first written laws. At the level of government offices, however, the first institution in charge of transportation was the Road Transport Administration Bureau, which was established in 1960 prior to that, the administration of most of transportation activities was the responsibility of a board and some share companies under the jurisdiction of the Ministry of Transport and Communications. Regarding the administration of other transportation systems, we find that rail transport administration came into being along with the beginning of rail transportation in the 1910s. As for air transport, Captain Mekonnen Beri tells us, in his book, “Aviation in Ethiopia” that the first airplane came to Ethiopia in 1921. Following that, towards the end of the 1930s (more specifically in1938), Ethiopian Airlines was legally established. Regarding water transport, the Ethiopian Merchant Navy was established during the reign of Emperor Haile Selassie, towards the end of the 1950s and the beginning of the 1960s, alongside which seaport and maritime 35
  31. 31. transport offices as well as maritime transport authority were mandated to administer the country's international water transport system. (FDRE, 1995) The 1950s and '60s constitute that period in the history of the development of our country's transportation sector in which much was accomplished. The period was one during which many agencies and companies were created and competitions among them to provide better services and attract passengers and clients flourished. Consequently several laws and regulations related to the administration of transportation were issued. After 1967/68, however, many things changed, especially changes that brought the development of transportation to a virtual standstill. Several transport companies were nationalized and brought under the jurisdiction of Freight Transport Agency and Public Transport Corporation. Everything pertaining to transportation was administered through zonal structures. (Ibid) 2.6. The Current Situation of the Ethiopian Transport Sector including study town The transportation branches for which data are available in Ethiopia are road transport, air transport, rail transport and water transport. Of these four types, the biggest service provider is the road transport branch. Accordingly, 90% of freight transportation both in the import and export sectors and 95% of the public transportation services are provided by the road transport branch. Whereas the majority of the urban population covers short- and medium-range distances on foot, in the urban areas people for the most part travel on foot, save for those limited instances where they use draught animals. It has been noted that the size of the population with access to modern transportation in Ethiopia does not exceed 20% (Federal Transport Authority, Megabit 1998). When we look at the overall situation in the transport sector, we observe instability of operation and, in some cases, deterioration. 2.7. Challenges in Transportation infrastructure in Ethiopia Transportation infrastructure in Ethiopia has been neglected for decades, but is now apriority of the government of Ethiopia. A large number of roads and railways are currently under construction, and will be completed between 2011 and 2014. Over a third of the funding for asphalt and gravel roads is being covered by the Ethiopian Government which is a considerable shift in recent year’s financial scheme. About 10 years back the International Development Agency, the European Union and Japan had supported the finance by allocating about90% required. 36
  32. 32. According to AfDB, 2013 report significant investment is therefore required to address major transport infrastructure deficit in the African continent. Increased budgetary constraints in the public sector for investment and maintenance of transport infrastructure have increased the need for effective transport infrastructure policies to attract private investment. The collaboration between Africa's leading continental organizations, UNECA, AUC through the NEPAD Planning and Coordinating Agency and the African Development Bank (AfDB) is designed to address the transport infrastructure deficit. The 12th Assembly of Heads of State and Government adopted Declaration requesting the African Union Commission (AUC) to formulate the Programme for Infrastructure Development in Africa (PIDA). RESEARCH METHODOLOGY 3.0. Introduction This section will addresses thesis design, method of data collection, sampling techniques; sample size determination, target population, sample frame, sample units, source of data, data analysis and interpretation, operational definition of variable, data analysis and data presentation, and limitation will be explained in detail together with their justification in each sub-topic accordingly. 3.1. Operational Definition of Variables Transport in this research is defined as the act of moving peoples, goods and etc from one location to another and it is considered as 37
  33. 33. Infrastructure: Infrastructure defined in the study as hard component that comprises all systems of urban physical structure that are mainly laid under the ground (e.g. Water mains) and on the ground (e.g. Roads) or above the ground (e.g. telephone and electric lines) to provide public service.(Litman, 2016) Mobility means having transport services going where and when one wants to travel; being informed about the services; knowing how to use them; being able to use them; and having the means to pay for them. Accessibility refers to people’s overall ability to reach services and activities, and therefore the time and money that people and businesses must devote to transportation. The quality of accessibility has tremendous direct and indirect impacts. Economic development: in this research economic development is defined as the 3.2. Research design 3.2.1. Research type The study will utilizes explanatory research type, the justification for using this research type is that, this research try to explain why certain thing will happened as they are tries to identify causal relationship between variable (Crotty, 1998). So that the causes of development of urban area 3.2.2. Time Dimension of the research The study will also employs cross sectional study design. 3.2.3. Research strategy The study will utilize survey research strategy. Because the survey research is a strategy that canvases percapita of social phenomena or reality by collecting information from sample or whole population using questionnaire (Crotty, 1998). Hence, it produces information which is extensive and fairly generalizable. For the purposes of this study open (inductive) and structured (deductive) qualitative survey will uses. To this end, the in depth interview manuscript will uses as open qualitative survey. To get reliable data study will uses key informant in depth interview, focus group discussion and semi- 38
  34. 34. structured questionnaires. The study will also uses both probabilistic and non- probabilistic sampling methods where households will be selected as sampling units 3.2.4. Research Approach This study will uses both the qualitative and quantitative research approach. “Quantitative methods are designed to study variables that can be measured in numbers and also defines qualitative approaches as inquiry process understanding social or human problems on building complex and holistic picture formed with words and reporting detailed views of respondents” (Crotty, 1998). Thus the two approaches will be uses inseparably during the research process. 3.3. Questionnaire The semi-structured questionnaires will uses to gather information about the impacts of transport infrastructure provision on individual percapita income and the development of the economy. The questionnaire will prepared in English and translated to Afan Oromo; the local language all ethnic group in the town speak. Further for the collection of information the enumerators will selects from local community and will trains. There by the enumerators will fills the legionnaire by reading the prepared questions for the respondents. 3.4. Interview To executes this study the researcher will conduct unstructured face to face interview with the town mayor office and transport office of the Aweday town, mayor of the town, municipal leader, and transport office and well known elders from the town because they will give for the research the real information about the impacts of transport infrastructure provision on local development. 3.5. Sampling Techniques (Kumar, 2002), stated that an optimum sample is one which fulfills the requirements of efficiency, representativeness, reliability and flexibility while taking in to consideration the constraints of time and cost. According to him even if there is no fixed rule in determining the 39
  35. 35. size of a sample to be taken from a given population, there is a general guide line which needs to be considered for determining adequacy of sample size. He suggested that as the size of a sample varies inversely with the size of the population, a larger proportion is required of a smaller population where as a smaller proportion may do so for a bigger population. Different authors use different formula to determine the sample size of the study. For the purpose of this study the formula set by Kothari (2004), in order to determine the sample size of the population which is less than 10,000 the sample size is calculated by using the following formula. For N< 10,000, n= z2 pq d2 Where N= population size (7,652) n= Desired sample size Z= Standard normal variable at 93% confidence level (1.81) p= estimated characteristics of the target population (0.5), q= 1-p, d= level of statistically significance set 5% margin of error (0.05). To determine the sample size: Z= 1.81, p= 0.5, q= 1-p, d= 0.07 n= (1.81)2 (0.5) (0.5) n, =3.2761 ×0.25 = 167 (0.07)2 0.0049. Fn= n/1+n/N= 167/1+167/7,652=164 3.5.1. Population Universe The first, second and third censuses carried out at national level in 1984 ,1994 and 2007; put the population size of Aweday town at 3,486 and 3,925, and 7,686 respectively. The Analytical statistical report released by CSA in 2011 provides population size at 9,096. Based on the trend observed in the past, and incorporating the population from the expansion area the current (2012) 40
  36. 36. population size of the town is reckoned to be close to 27,863 including the population of expansion area and total household for both sex is 7,652 (Aweday CIP, 2006-20) 3.5.1. Sampling Frame In order to confirm generalization and validity of the study, taking sufficient sample size and utilizing sample technique will be given special concern. The sample frame will be the list of the above stated 164 households of Aweday town and 9 employees of different will be selected. 3.5.2. Sampling Unit The sampling units will be drawn from the sampling frame. Sampling units are a units or sets of units considered for selection at a stage of sampling. Therefore, the sampling units are the sample of all households of Aweday town and purposively selected employees of the offices 3.5.3. Sampling Size Aweday town now it separated into three kebeles with the rural area under it since 2014 and it composed of people of different sexes, ages, professionals and educational background. Sample survey is 164 households to be selected by systematic sampling from total households and 9 respondents purposively will select from, the three offices of town administration, and well known elder people of the town. And the total sample size of the researcher will be 173 peoples. Sample interval= Total household/Total sample size=7652/173= 44th 3.6. Sources of Data The study will be uses both primary and secondary sources of the data. Both of the data will be discussed as the following: 3.6.1. Primary Data Sources The primary data sources will be obtains from the officially registered household of Aweday town by the orally administered questionnaires, the in depth interview and the focus group discussion will be conducts with purposively selects employees and well known elder people of the town. 3.6.2. Secondary Data sources Secondary data will be obtains from relevant books, working papers, previous researches reports, unpublished materials and other related documents. 41
  37. 37. 3.7. Data Analysis and Interpretation The data that are collected by both primary and secondary data collection will be analysis or interprets using figures, tables, percentages, frequencies and averages, bar graph, photos and pie chart. 3.8. Data Presentation The finding of the study will be presents by using tables, paragraph, photos and pie charts. 42
  38. 38. 3.9. Operationalization (Logical) Framework 3.9. Limitation 43 Specific objective Concept Variable Method of data collection Method of data analysis To identify the current situation of transport infrastructure in the town Availability and Accessibility Time, cost human and financial resource adequacy, level of coordination, availability quality of services, level of performance levels Questionnaire Personal interview Multivariate regression analysis using SPSS To describe the overall transport infrastructure provision process and identify major challenges during provision of this infrastructure Transparency and accountability Availability of work flows, responsibilities, standards and enforceability, clarity and awareness, availability of standards, customers and staff awareness’ Observation, Interviews, Records Description of facts and characteristics Research objective Concept Variable Method of data collection Methods of data analysis Identify major impacts of transport infrastructure provision on economic development Effective and efficient use of resource Household income, socio- economic, Observation, documents of offices Descriptive Analysis To forward and a recommendation to solve the problems Equity and inclusiveness Equal and fair distribution of resources and services Observation documents of offices Descriptive Analysis
  39. 39. There might be operational and logical limitation for this study such as lack of adequate data on topic under study, the impacts of transport infrastructure provision is not really documented by any sectors, and some official and expertise might be unwilling to conducts interviews due to shortage of time or busy with their work and long appointment time to carry out an interview might be there. To overcome these short comings the researcher will uses frequent visit to get officials using their telephone. In addition the researcher will convince the academic purpose of the study; the benefits of the study and its confidentiality to the respondents REFERNCE ACIL ALLEN CONSULTING PTY LTD, 2014. Urban Transport Infrastructure: Report on infrastructure in Australia. National Economic Analysis in Australia. 61 WAKEFIELD STREET ADELAIDE SA 5000, 2014, AUSTRALIA Africa Union UN Economic and Commission for Africa, 2005. Transport and the Millenium Development Goals in Africa. African Development Bank, 2013. Developing Africa’s Infrastructure for Enhanced Competitiveness. World Economic Forum the Africa Competitiveness Report 2013. Barro Robert, 1990. Government Spending in Simple Models of Economic Growth: Journal of Political Economy, Vol. 98, No. 5, Part. 2: The problems of Development: A Conference of Institute for the Study of Free Enterprise System, 44
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  44. 44. Kessides and Christine. 1993. The Contributions of Infrastructure to Economic Development: A Review of Experience and Policy Implications. World Bank Discussion Papers # 213, Washington, D.C.: The World Bank. Sadoulet et al., 1992. “Structural Adjustment under Transaction Costs.” Paper Presented at 29th European Association of Agricultural Economists Meeting on Food and Agricultural Policies under Structural Adjustment. Stuttgart: University of Hohenheim. Gannon, C., K. Gwilliam, Z. Liu and C. Malmberg Calvo. 2000. Transport: Infrastructure and Services. Poverty Reduction Strategy Paper A Sourcebook. Washington, D.C.: Gannon, Colin and Zhi Liu. 1997. “Poverty and Transport.” TWU discussion papers, TWU-30. Washington, D.C.: World Bank. Polack, et al, 2000. Analytical Transport Economics: An International Perspective. UK: Edward Elgar Publishing Ltd. IFAD, 2001. International Fund for Agricultural Development. Rural Poverty Report Rome, 2001. Fromm, G. 1965. Transport Investment and Economic Development. Washington, D.C.: Brookings Institute. Forkenbrock, D.J. 1990. “Putting Transportation and Economic Development into Perspective.” Transportation Research Record. Washington D.C.: Transportation Research Board. HMGN. 1997. The Ninth Plan (1997-2002). Kathmandu, Nepal: National Planning Commission Secretariat. McCarthy, Patrick S. 2001. Transportation Economics Theory and Practice: A Case 49
  45. 45. Study Approach. Oxford: Blackwell Publications Ltd, UK Quinet et al, 2004. Principles of Transport Economics. UK: Edward Elgar Publishers. SACTRA. 1999. A Framework for Assessing Studies of the Impact of Transport Infrastructure Projects on Economic Activity. London: Department of the Environment, Transport and the Regions. Schelling, D. and J. Lebo. 2001. “Design and Appraisal of Rural Transport Infrastructure: Ensuring Basic Access for Rural Communities.” Technical Paper. Washington, D.C.: World Bank. ISBN 0-8213-4919-8. SACTRA. 2000. Transport and the Economy. London: Department of the Environment, Transport and the Regions. Varian, Hal R. 1992. Microeconomic Theory.3rd edition. New York & London: W.W. Norton & Company. Varian, Hal R. 1999. Intermediate Microeconomics: A Modern Approach.5th edition. New York & London: W.W. Norton & Company. Vickerman, R. 2001. “Transport and Economic Development.” Paper presented at the 119th Round Table for the European Conference of Ministers of Transport. Paris. March. World Bank. 1994. World Development Report 1994: Infrastructure for Development. Oxford: Oxford University Press. World Bank, 1996. Morocco - Socioeconomic Influence of Rural Roads: Fourth Highway Project. Washington, D.C.: Operations Evaluation Department, the World Bank. World Bank. 2001. World Development Report 2001. Oxford: Oxford University Press. OECD. 2001. Transport and Economic Development: Report of the 119the Round Table 50
  46. 46. Conference of the European Ministers of Transport on Transport Economics. OECD. Paris. March. Sadoulet, Elisabeth and Alain de Janvry. 1995. Quantitative Development Policy Analysis. Baltimore and London: The John Hopkins University Press. History of Road Transport building in Ethiopia http://www.era.gov.et/LinkClick.aspx? fileticket=PJi2ZXtU5V8%3D&tabid=75&AspxAutoDetectCookieSupport=1 Transportation: The Hub of Nigerian Economy Available at: http://www.nigerianhornnews.com.ng/pages/Transportation%20The%20Hub%20of%20Nigerian %20Economy.html Appendix A TIME TABLE AND BUDGET BREAKDOWN OF THE STUDY Time Table for the activities 51
  47. 47. 52
  48. 48. Appendix B Budget Plan for the Thesis Although money is not the only thing that contributes to the quality of any type of research work, it has a significant contribution too. This research, as it can be seen in the table below, will incur an estimated cost of 18123 ETB. S/no Items required Unit Quant ity Cost per unit in it. Birr Total cost ofit. Birr 53 s/no Activities Nov Dec Jan. Feb Marc h Apri l May June 1 Research Topic Selection 2 Consulting With the Coordinator About the Topic 3 Topic Approval 4 Search for Literature Reviews 5 Developing Thesis First Draft Proposal 6 Submission of First Draft Proposal 7 Revision of Thesis First Draft Proposal 8 Submission of Second Thesis Proposal 9 Revision of Thesis Second Proposal 10 Submission of Final Proposal 11 Approval of Final Proposal and Clearance 12 Data Collection 13 Data Analysis and Report Writing 14 Submission of First Draft Paper 15 Submission of Second Draft Paper 16 Submission of Final Paper 17 Complete the Research Paper 18 Submit the Final Paper 19 Presentation and Defense of the Paper
  49. 49. Birr Cent Birr Cent 1 Stationary Paper Ream 4 100 00 400 00 Pen Packet 1 95 00 95 00 Pencil Packet 1 15 00 15 00 Rubber Packet 1 6 00 6 00 Sharpener Packet 1 18 00 18 00 Note Book Number 1 40 00 40 00 Subtotal 1 574 00 2 Equipments Binder Pieces 6 15 00 90 00 Field Bag Number 1 600 00 600 00 Rewritable CD Number 10 20 00 200 00 Flash memory 8GB Number 1 270 00 270 00 Subtotal 2 1,160 00 3 Travel cots Premium of researcher for data collection Day 30 222.3 10 6,669 00 Transportation cost Trips 4 175 00 700 00 Wage for assistant data collectors Day *persons 10*5 140 00 7,000 00 Subtotal 3 14,69 9 00 4 Communications Fax Page 20 10 00 200 00 Email charges Minutes 150 0 40 60 00 Mobile Cards Number 10 50 00 500 00 Subtotal 4 760 00 5 Publication 54
  50. 50. Printing the materials from the internet Page 300 0 75 225 00 Secretarial services or entering the data into the computer Page 100 3 00 300 00 Printing proposal Page 40 0 50 20 00 Photocopy of questionnaires Page 320 0 50 160 00 Printing first draft paper Page 100 0 75 75 00 Printing second draft paper Page 100 0 75 75 00 Printing final paper Page 100 0 75 75 00 Subtotal 5 930 00 6 Grand subtotal 1631 1 00 7 Contingency 1812 30 8 Grand total 1812 3 30 APPENDIX B INSTITUTES OF URBAN DEVELOPMENT STUDIES DEPARTMENT OF URBAN INFRASTRUCTURE PROVISION MANAGEMENT QUESTIONNAIRE (TO BE FILLED BY RESPONDENTS) Dear Respondent: I, Nasir Ousman, am student at the Ethiopian Civil Service University, Institute of Urban Development Studies. This questionnaire is designed to assess the Impacts of Transport infrastructure Provision on local economic development, the case of Aweday town of Oromia Regional state. The information you provide in this questionnaire will be kept confidential and the researcher would like to assure you that data will only be used for academic purposes. Therefore, I would kindly request you to carefully read the questions and give your valuable answer to each question. Your genuine and frank response to the questionnaire is highly important for the achievement of the objectives of this research. Please provide your response as per the 55
  51. 51. instruction. Tick (√) in the given box and write your answer on the blank space for open ended questions. No need to write your name on this questionnaire. Thank you in advance Part one: General information/ Personnel data The following questions are about your position and other personal information. Completion of this information is voluntary & confidentially is assured. No individual data will be reported 1. Sex Male  Female  2. Age Under 26  27 to 35  36 to 55 56 to 65 66 or older  3. Level of education Under 12  12th complete  Certificate  Diploma  Bachelor’s of degree Masters Degree and above  Part two: to the current situation of transport infrastructure This section questionnaire relates to your level of awareness and knowledge regarding the physical conditions of transport infrastructure in Aweday town. With each statement please provide your response in the space provided 1. How do you evaluate the existing transport infrastructure of your town? Very Good Good Satisfactory  Poor  Very Poor  56
  52. 52. 2. Is there any measure taken by any sectors of the town exist to improve transport infrastructure accessibility and Mobility inyour residential area? Yes  No  3. If your answer for question 1 is “Yes” which type of transport infrastructure is provided in your residential area? Municipal  Mayor Office Transport Sector of the town  Others (Specify)__________________________________________________________ 4. Do you think that in all kebeles and villages under the municipalities have available transport infrastructure? Yes  No  5. If your answer for question 4 is “No” which type of transport infrastructure is available if not why? _________________________________________________________________________ _________________________________________________________________________ 6. How do you see the transport infrastructure in the town specially road infrastructure? Very Good Good Bad Very Bad 7. Is there available mode of transport infrastructure in the town? Yes No If yes which type is available _______ if no describe the reason____________ Part Two: Over all transport infrastructure provision process and challenges during provision 8. How do you see the importance of transport infrastructure provision process of in the town? Very important Moderately important Not important 9. Is there available budget for provision and maintenance of transport infrastructure of the town? Yes No 57
  53. 53. 10. If question no. 9 is “yes” describe the reason _______________________________ If “No” what measures will be important__________________________________ 11. What are the main challenges of transport infrastructure provision process in the study town? Absence of Available Budget Weak transport policy implementation APPENDIX C: GUIDING QUESTIONS FOR INTERVIEWS WITH A KEY INFORMANT (TOWN MAYOR OFFICE, MUNICILITY, TRANSPORT SECTOR OF THE TOWN) 58
  54. 54. DEAR RESPONDENTS, The only purpose of this interview is to gather primary data for award of master Degree in Urban Infrastructure Provision and Management. since its aim is only academic purpose, respondents should give the correct information without being influenced with any kind of imposition. Respondent’s identity and other information will be kept confidential. If you are not interested, you are free for not to fill this questionnaire. I am grateful to your efforts, time and cooperation in advance. Over all existing transport infrastructure related question 12. How do you see the Availability of Transport infrastructure in the town? 13. What measures taken by transport sector of the town to provide the infrastructure which is not available in the town? 14. What are the major impact that are existed due to the inefficiency and absence of transport infrastructure on local economy Challenges which hinder the provision of transport infrastructure 1. What are the main challenges that hinder transport infrastructure provision in the study town? 2. Is there any problems or challenges that face economic development of town due to absence of transport infrastructure 3. What measures taken to tackle the challenges of transport infrastructure provision process by any government body? 4. How do you evaluate the current process of transport infrastructure provision in the town? 5. What do you think for the improvement of transport infrastructure to provide accessible and affordable? Impacts of Transport infrastructure provision on economic development 1. What are the major impact of transport infrastructure provision in economic development? 59
  55. 55. 2. Describe the relationship between transport infrastructure provision and number of unemployment in the town? 60

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