Top

Published in:

2024 | OriginalPaper | Chapter

8. Transportation and Economic Development: Advancing Technological Innovation and Sustainability in the Transportation Sector of a Developing Nation

Authors : Toyin Samuel Olowogbon, Segun B. Fakayode, Adebisi Oloruntoba Luke

Published in: Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa

Publisher: Springer Nature Switzerland

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

We engaged a quasi-experimental approach to estimate the impact of the O-pay technological innovation in transportation services on development outcomes in Kwara State, Nigeria. We randomly sampled 100 O-riders and 60 motorcyclists who were not under the O-Pay project. A structured questionnaire was used for data collection. The collected data were analyzed using descriptive statistics and difference in difference estimators. The intervention effects were evaluated in the short term. Our findings showed that the average weekly income increased by 137% for participating O-riders to (N30,220 [84 USD] from N22,050 [61 USD] at baseline) attributed to the intervention. The average weekly savings of O-riders increased by 355% (N4875 [$14] to N17,309 [$48] at baseline). We found an increase in average weekly labor productivity at 160% (625.06 Naira/hour [$1.7] from N 389.6/hour [$1.1] at baseline). The intervention led to a reduction in resource wastage; for example, the weekly fuel cost was reduced by 21% (N1254 [$3.48] out of N6020 [$16.7]) when compared with the non-O-pay participants. Although evidence in the short-term revealed that smart transportation has the potential to address significant development issues, including poverty, unemployment, financial exclusion, resource wastage, poor health, and well-being, among others. Evidence showed that there is a need to plan and invest in the sustainability of technological innovations rather than focusing on innovating alone to harness its full benefits.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Entrepreneurial Ecosystem and the Role of Telecom Multinationals in Achieving SDG 9 in Developing Economies

next chapter Drivers of Eco-Innovation Among Manufacturing Firms in Nigeria

At the time of research, a US dollar was 360 naira. This was used for the conversion.

Abboubi, M. E. L. (2022). The perilous path toward supply chain integration addressed from social capital perspective. International Journal of Accounting, Finance, Auditing, Management and Economics, 3(1–1), 32–57.

Adeyi, E. O. (2018, August). The impact of transportation on economic development in Nigeria. International Journal of Contemporary Applied Researches, 5(8). ISSN: 2308-1365. www.ijcar.net

Cigu, E., Agheorghiesei, D. T., Gavrilut, A. F., & Toader, E. (2018/2019). Transport infrastructure development, public performance and long-run economic growth: A case study for the EU-28 countries. Sustainability, 11, 67. https://doi.org/10.3390/su11010067

Clarke, C., & Batina, R. G. (2019). A replication of “is public expenditure productive?” (Journal of Monetary Economics, 1989). Public Finance Review, 47(3), 623–629. https://doi.org/10.1177/1091142117736606CrossRef

Jedwab, R., & Moradi, A. (2014). Transportation technology and economic change: The impact of colonial railroads on city growth in Africa (Working Paper Series IIEP-WP-2014-3). Institute for International Economic Policy. www.gwu.edu/~iiep

Jibrilla, H. M., & Fashola, O. M. (2018). Impact of commercial tricycle operation on income of youths in Mubi North Local Government Adamawa State, Nigeria. IDOSR Journal of Humanities and Social Sciences, 2(3), 56–72.

Karl, A. A., Micheluzzi, J., Leite, L. R, & Pereira, C. R. (2018). Supply chain resilience and key performance indicators: A systematic literature review. Production. https://doi.org/10.1590/0103-6513.20180020

Lemes, A., Ferreira, G., Antonio, A., Junior, B., & Larson, W. D. (2020). Effects of land use and transportation policies on the spatial distribution of urban energy consumption in Brazil. Energy Economics, 90. https://doi.org/10.1016/j.eneco.2020.104864

Lenz, N. V., Pavlić Skender, H., & Mirković, P. A. (2018). The macroeconomic effects of transport infrastructure on economic growth: The case of Central and Eastern E.U. member states. Economic Research-Ekonomska Istraživanja, 31(1), 1953–1964. https://doi.org/10.1080/1331677X.2018.1523740

Lindsey, R., & Santos, G. (2020). Research in transportation economics addressing transportation and environmental externalities with economics: Are policymakers listening? Research in Transportation Economics, 82(October 2019), 100872. https://doi.org/10.1016/j.retrec.2020.100872

Listiono, L. (2018). The relationship between transport, economic growth, and environmental degradation for ninety countries. Journal of Environmental Sustainability, 2, 1–64.

Ma, Y., Zhu, J., Gu, G., & Chen, K. (2020). Freight transportation and economic growth for zones: Sustainability and development strategy in China. Sustainability, 12, 10450.

Meersman, H., & Nazemzadeh, M. (2019). The contribution of transport infrastructure to economic activity: The case of Belgium. Case Studies on Transport Policy, 5(2), 316–324. https://doi.org/10.1016/j.cstp.2017.03.009CrossRef

Meng, L., Li, L., & Liu, S. (2015). Research on the relationship between regional railway freight volume and GDP. In Proceedings of 4th International Conference on Logistics, Informatics and Service Science (pp. 345–350). Springer.

Mohammed, A. U. (2020). Impact of financial literacy on individual saving: A study in the Omani context. Research in World Economy, 9(2), 123–128. https://doi.org/10.5430/rwe.v11n5p123CrossRef

Moldabekova, A., Zhidebekkyzy, A., Akhmetkaliyeva, S., & Baimukhanbetova, E. (2020). Advanced technologies in improving the management of logistics services: Bibliometric network analysis. Polish Journal of Management Studies, 21, 211–223.

Molero, G. D., Santarremigia, F. E., Poveda-Reyes, S., Mayrhofer, M., Awad-Núñez, S., & Kassabji, A. (2019). Key factors for the implementation and integration of innovative ICT solutions in SMEs and large companies involved in the multimodal transport of dangerous goods. European Transport Research Review, 11, Article 28.

Mubarik, M., Rasi, R. Z., & binti, R. M. (2019). Triad of big data supply chain analytics, supply chain integration and supply chain performance: Evidences from oil and gas sector. Humanities and Social Sciences Letters, 7(4), 209–224. https://doi.org/10.18488/journal.73.2019.74.209.224

National Bureau of Statistics (NBS). (2018, December). Labour force statistics. Unemployment and underemployment report (Vol. 1).

Okechukwu, N., Sizwe, M., & Adedotun A. (2021). The effect of transportation infrastructure on economic. Proceedings of the 2nd African International Conference on Industrial Engineering and Operations Management Harare, Zimbabwe, December 7–10, 2020.

Park, J. S., Seo, Y. J., & Ha, M. (2019). The role of maritime, land, and air transportation in economic growth: Panel evidence from OECD and non-OECD countries. Research in Transportation Economics, 78, 100765. https://doi.org/10.1016/j.retrec.2019.100765CrossRef

Pradhan, R. P. (2019). Investigating the causal relationship between transportation infrastructure, financial penetration and economic growth in G-20 countries. Research in Transportation Economics, 78, 100766.CrossRef

Rodrigue, J.-P., Comtois, C., & Slack, B. (2016). The geography of transport systems. Taylor & Francis.CrossRef

Som, J. O., & Anyigba, H. (2022). Examining the effects of information systems usage and managerial commitment on supply chain performance: The mediating role of supply chain integration. SAGE Open. https://doi.org/10.1177/21582440221091251CrossRef

Sorker, F. (2019). Investigation on reverse logistics of end of life cars in the UK. eprints.mdx.ac.uk

Tob-ogu, A., Kumar, N., & Cullen, J. (2018). ICT adoption in road freight in Nigeria—A case study of the petroleum downstream sector. Technological Forecasting & Social Change, 131, 240–252.CrossRef

Tong, T., & Yu, T. E. (2018). Transportation and economic growth in China: A heterogeneous panel co-integration and causality analysis. Journal of Transport Geography, 73, 120–130.CrossRef

Valila T. (2020). An overview of economic theory and evidence of public-private partnerships in the procurement of (transport) infrastructure. Utilities Policy, 62(November 2019). https://doi.org/10.1016/j.jup.2019.100995

Walid, C. (2020). Information and communication technologies, road freight transport, and environmental sustainability. Environmental Economics, 11(1), 124–132. https://doi.org/10.21511/ee.11(1).2020.11

World Bank. (2020a, May 29). Three emerging digital technology for the new normal in transport. World Bank Blogs. Retrieved on 10 August 2021 from www.blogs.worldbank.org/transport/three-emerging-digital-technology-for-the-new-normal-in-transport

World Bank. (2020b). Disability Inclusion in Nigeria: A Rapid Assessment. © World Bank. http://hdl.handle.net/10986/34073. License: CC BY 3.0 IGO.

World Bank. (2021, May 12). How digital integration has transformed Kenya’s transportation sector. The World Bank feature Story. Retrieved on 10 August 2021 from www.worldbank.org/news/feature/2021/05/12/how-digital-integration-has-transformed-Kenya-s-transportation-sector/

World Poverty Clock. (2018, June). Nigeria has become the poverty capital of the world. Retrieved on 15 December 2019 from www.qz.com/Africa

Xu, L., Li, B., Ma, C., & Liu, J. (2022). Supply chain finance and firm diversification: Evidence from China. Australian Journal of Management. https://doi.org/10.1177/03128962221075366CrossRef

Yin, C. & Yu, S. (2019). Social benefit of urban infrastructure: An empirical analysis of four Chinese autonomous municipalities, Utilities Policy, 58(16–26). ISSN 0957-1787. https://doi.org/10.1016/j.jup.2019.03.001

Title: Transportation and Economic Development: Advancing Technological Innovation and Sustainability in the Transportation Sector of a Developing Nation
Authors: Toyin Samuel Olowogbon
Segun B. Fakayode
Adebisi Oloruntoba Luke
Publisher: Springer Nature Switzerland
Book: Innovation, Entrepreneurship and the Informal Economy in Sub–Saharan Africa
Print ISBN: 978-3-031-46292-4

Electronic ISBN: 978-3-031-46293-1

Copyright Year: 2024
DOI: https://doi.org/10.1007/978-3-031-46293-1_8