At the macroeconomic level the importance of transportation for a whole economy: transportation is linked to producer, consumer and production costs. The importance of specific transport activities and infrastructures can thus be assessed for each sector of the economy.
Transportation links together the factors of production in a complex web of relationships between producers and costumes. The outcome is a more efficient division of production by exploitation of geographical comparative advantages, as well as the means to develop economies of scale and scope. The productivity of space, capital and labor is thus enhanced with the efficiently of distribution. It is acknowledged that economic growth is increasingly linked with transport development.
Conclusion
In Latvia we can use more than one means of transportation. Means of transportation in Latvia are:
Road transport;
Airports;
Ports;
Railway;
Pipelines.
Each cargo needs to be transported by the suitable transport, which is the cheapest and efficient, for example, oil can be transported by pipelines.
The Government of Latvia worked out Latvian Transport Development Programme from 1996 to 2010.
The Latvian Transport Development Programme consists of main objectives in transport system developing and of sub-programmes.
Transport plays a significant role in the development of the national economy and in raising the standard of living of the population.
The transport sector is an important component of the economy impacting on development and the welfare of populations. When transport system is efficient, they provide economic and social opportunities and benefit that impacts throughout the economy.
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