Transportation Economics Assignment I

World has been changing its shape in terms of different parameters such as geographical region,
climatology, urban forms, technology, conception of people, economics, etc. With develop of
transportation; economics has been growing with flourishment of different potential sector. Nepal is
also one of such country that having slow pace of development that’s why we called it as developing
country. One of the major project in Nepal is East-West Highway which leads development in economics
and as well as in development of relation between the ethnics groups and geographical regions.
Mahendra Highway, called as East-West highway has affected different factors of Nepal. Listing the
affecting factors of Mahendra Highway, it has both positive and negative factors. Positive factors of
highway make the exchange of goods, business, retails which helps in development of economics. Also
this highway helps to import and export goods, objects within the countries and other countries.
Development of roads, means of transportation, auxiliary roads connecting the other regions spread
development i.e. decentralization. Centralization of Nepal is somewhat makes decentralize the
development. Also because of transportation development of Mahendra Highway, different activities
can be seen such as activities related to selling be producers and buying goods by consumer, bicycle
riding for education by rural areas, retails and shopping activities around highway, etc. This type of
development is called as ribbon development which has great contribution in micro-economics as well
as macro-economics. Thus if we list out the points other than infrastructures on contribution of
economics of Nepal, we can list out as transportation economics as basis of agriculture development,
basis of industrial development, tourism development, tertiary sector development, etc. So such
development makes the better living standard of people living in Nepal. Almost all variations in living
standards are explained by productivity. Productivity may be economics parameter such as market of
agriculture, tourism market, exchange of goods, service providers. Productivity defines the way marked
by development of country in future.

Talking with negative factors, most of development is limited to around the highway. Urban
development around highway made the centralize economics and also impacts of development starts to
decreasing causing portion of centralized development. Also it increases the pollution, and misused of
the natural resources.

According to principle of economics, a country’s standard of living depends on its ability to produce
goods and services. Such ability catalysed by transportation and however government has to formulate
the programme to reduce the effect caused by transportation development.

By Kiran Basukala[073MSCM303] 2018