This section focuses on the effects of transportation and communications networks on economic development of various regions. The material presented is designed to help you meet the following objective.

Strong, reliable communication and transportation systems play a major role in the economic development of countries and regions. In areas where both communication networks and transportation systems are efficiently integrated, the ability to swiftly communicate, move people, and transport goods provides a strong base for the growth of trade and hence is a crucial factor in developing a stronger economy. By contrast, if a country or region does not have strong communication and transportation networks, trade and the economy are less robust.

There is a spatial component to the location and use of transportation and communication systems and this is closely tied to a particular economic system's form and success. As early as the 18th century, political economist Adam Smith wrote that coastal areas, with their ports and easy access to sea trade, would be more prosperous than inland areas (Sachs et al., 2001). In this branch of economic geography, the physical geography of a country—its oceans, rivers, mountains—and the spatial location of its economic actors and engines determine its wealth or poverty. Factors such as these will also determine where transportation systems in particular are placed.