page_title: Effects of the car on societies
section_title: Economic growth
hierarchical_section_title: Effects of the car on societies / Economic changes / Economic growth
caption_attribution_description: English: Motorisation rate vs. Economic growth in Europe. Just countries whose population is greater than 1 million inhabitants. Source: Eurostat Motorisation Rate and Economic Growth
context_page_description: Since the start of the twentieth century, the role of the car has become highly important though controversial. It is used throughout the world and has become the most popular mode of transport in the more developed countries. In developing countries, the effects of the car on society are not as visible, however they are significant. The development of the car built upon the transport sector first started by railways. This has introduced sweeping changes in employment patterns, social interactions, infrastructure and the distribution of goods.
  Nonetheless the positive effects on access to remote places and mobility, comfort provided by the automobile, allowing people to geographically increase their social and economic interactions, the negative effects of the car on everyday life are not negligible. Although the introduction of the mass-produced car represented a revolution in industry and convenience, creating job demand and tax revenue, the high motorisation rates also brought severe consequences to the society and to the environment.
context_section_description: In countries with major car manufacturers, such as USA or Germany, a certain degree of car dependency might be positive for the economy at a macroeconomic level, since it demands automobile production, therefore resulting also in job demand and tax revenue. These economic conditions were particularly valid during the 1920s when the number of automobiles, worldwide, had a substantial annual average increase, but also during the post–World War II economic expansion. Notwithstanding the growing effects provided by the automobile on the economy of some countries, several other auto-dependent countries, deprived from automobile industry and oil resources, have to allocate substantial economic assets, to satisfy its mobility policies, affecting then their commercial balance. This situation is broadly valid in the majority of the European countries, since, disregarding some few exceptions such as Norway, Europe is largely dependent on imports for its fossil fuels. Furthermore, just few European countries, such as Germany or France, have car manufacturers productive enough to satisfy their country's internal demand for cars. All these factors related to high motorisation rates, affect therefore the economic growth in the majority of the European countries. Most African countries are also dependent on imported cars, usually second-hand from Western countries, some of those vehicles being in a very worn-out state. Finally, even countries with oil resources could be deprived of refineries, such as Nigeria which has to import fuel even though it is a major oil producer.
caption: Motorisation rate[16] vs. Economic growth[17] in European countries whose population is greater than 1 million inhabitants. Source: Eurostat.
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