Chapter 7

Question 1

What are the five theories that “prove” transport leads to economic development?

Answer 1

1. The basis theory
2. Input-output analysis
3. The multiplier analysis
4. The trade theory
5. The establishment theory and agglomeration factors

Question 2

Briefly explain the basis theory

Answer 2

Transport is only viewed as the provision of interregional / international geographic links by which
flows of export and local goods take place;
the role of transport can be explained, but it cannot be (or is difficult to) evaluate economically
Basis theory is limited and is more descriptive than analytical in nature

Question 3

Briefly explain the input-output analysis

Answer 3

Goal is to determine how a stimulus arising from an external source, is spread through the
economy:
Example: government invests a large amount in infrastructure in the country / region or a country /
region exports a lot and earns an income:
• Now … how does the economy / interaction patterns in the economy change …?
• If one knows the flows … then you would know where to build the infrastructure

Question 4

Briefly explain the trade theory

Answer 4

• Emphasizes the export basis of a region and the role that transport
costs play regarding trade patterns:
• The volume and direction of the goods traffic between regions is
determined by a region’s cost benefit in the manufacture and
distribution of its goods above that of other regions.
• The comparative cost benefit thus consists of two components:
• Production benefit (P) and Transport benefit (T)

Question 5

Explain the simple multiplier process

Answer 5

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