Chapter 1: Introduction
1.1. Study background
As we know, transportation is very effective in contributing to the development of the economy across countries, regions and the world. Transportation can affect global development patterns and can promote or strengthen the economic growth of the nation. Investment in the transport sector will lead to linkages between producers and consumers to create effective product sharing, optimize geographical advantages, and provide expand the scope and scale of the economy. The contribution the economic development from transport includes are as following:
• Network effects—linking more locations exponentially increases the value and effectiveness of transport
• Performance improvements—reducing costs and timing for both existing passenger and freight movements and increasing the contribution of transportation to economic growth.
• Reliability - Improve operating time and reduce losses and damages, thus reducing economic drag.
• Market size—access to wider markets adds to economics of scale in production, distribution, and consumption, thereby increasing economic growth
• Productivity—transport increases productivity gained from access to large and more divers base of inputs such as raw materials, parts, energy, labour, and broader markets for more diverse outputs.
This research will focus on the finding the following three key research questions mainly:
1) What are the benefits of building Lao-China Railway Project for Lao PDR?
2) What will have any impact on the Socio-Economic, environment and others aspects from the Lao-China Railway Project?
3) What are the Challenges, advantages and disadvantages of building a Lao-China Railway project?
The main research questions of this research are to have a greater understanding of the different fac