The following discussion, excerpted from a research paper by its director, John Ozment, focuses on how transportation research contributes to the economic performance of developing countries. Most people would agree that transportation improvements contribute to economic development. Inadequate transportation limits a nation's ability to utilize its natural resources, distribute food and other finished goods, integrate the manufacturing and agricultural sectors, and supply education and medical services. Planners in developing countries need guidance to aid in their decisions to improve existing transportation and build new infrastructure.
Researcher have little actual evidence linking transportation improvements to economic development.
It generally is not known, for example, whether investments in transportation infrastructure are more productive than investments in other sectors of an economy. Nor is it known whether capital expenditures on one mode of transportation are more productive than those spent on another mode. Some believe that there is a serious need for improved road transportation service in developing countries, and improving the efficiency of road transport would have a beneficial impact on industrial and agricultural production and distribution. Others suggest that developing countries may actually overinvest in transportation improvements. Often consultants apply solutions to problems in developed countries, such as the U.S., to problems in developing countries with little concern for differences in need, values, resource availability, and climate.