Ethiopian Civil Service University

Institute of Urban Development

Studies

Department of Urban Infrastructure Provision Management

Master’s Program

Thesis Proposal on the Impacts of Transport infrastructure Provision

on economic development. A Case study of Aweday Town of OROMIA

REGION

By: Nasir Ousman ID. No. ECSU1400862

ADVISOR: DR. RANAVINJAI SINGH

A Proposal will be submitted to the Institute of Urban Development Studies

Programme, Ethiopian Civil Service University, in Partial Fulfillment of the

Requirements for the preparation of the thesis for the Award of a Masters Degree in

Urban Infrastructure Provision Management Management.

June 14, 2016

Addis Ababa, Ethiopia

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Table of Content

Title page

List of Figure.....................................................................................................................................

Table of Content………………………………………………………………………………

1. Introduction..............................................................................................................................1

1.1. Background of the study...................................................................................................3

1.2. Statement of the problem..............................................................................................4

1.3. Objectives of the Study.........................................................................................................6

1.3.1. Main objectives of the study..........................................................................................6

1.3.2. Specific Objectives of the study................................................................................6

1.3.3. The research Questions..................................................................................................7

1.3. The Hypothesis of the study..............................................................................................7

1.4. Conceptual Definition.......................................................................................................7

1.6. Significance of the study...................................................................................................7

1.7. Scope of the study.................................................................................................................8

1.8. Description of the study area................................................................................................8

1.8.1. Location of the Study Area............................................................................................8

1.7.2. Foundation......................................................................................................................9

1.7.3 Demographics..................................................................................................................9

1.7.2 Topography.....................................................................................................................9

1.8. Organization of the Study.....................................................................................................9

1.9. The Limitation of the Study................................................................................................10

2. LITERATURE REVIEW....................................................................................................11

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2.1. Definition of some Key concepts used in the topic of the study....................................11

2.2. Basic Theoretical Impacts of Transport infrastructure provision on economic

development...............................................................................................................................12

2.3. 1. THE ECONOMIC IMPACT OF URBAN TRANSPORT.....................................15

2.6. The Current Situation of the Ethiopian Transport Sector including study town............23

2.7. Challenges in Transportation infrastructure in Ethiopia.................................................23

RESEARCH METHODOLOGY...............................................................................................25

3.0. Introduction..........................................................................................................................25

3.1. Operational Definition of Variables.............................................................................25

3.2. Research design...............................................................................................................25

3.2.1. Research type............................................................................................................25

3.2.2. Time Dimension of the research............................................................................25

3.2.3. Research strategy......................................................................................................26

3.2.4. Research Approach...................................................................................................26

3.3. Questionnaire...................................................................................................................26

3.4. Interview...........................................................................................................................26

3.5. Sampling Techniques......................................................................................................27

3.5.1. Population Universe.....................................................................................................28

3.5.1. Sampling Frame...........................................................................................................28

3.5.2. Sampling Unit...............................................................................................................28

3.5.3. Sampling Size...............................................................................................................28

3.6. Sources of Data...................................................................................................................28

3.6.1. Primary Data Sources...................................................................................................28

3.6.2. Secondary Data sources................................................................................................29

3.7. Data Analysis and Interpretation.........................................................................................29

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3.8. Data Presentation................................................................................................................29

3.9. Oprationalization (Logical) Framework.............................................................................30

3.9. Limitation............................................................................................................................31

Reference...........................................................................................................................................

Annexes.............................................................................................................................................

Appendix............................................................................................................................................

About authors BA in economics From Arban Minch University and MA in Urban Infrastructure

from Ethiopian Civil Service University

9

List of Figures

Figure 2.1: Relationship between cost and output…………………………………….13

Figure 2.2: Price Bands…………………………………………………………………14

Figure 2.3: Contributions of infrastructure………………………………………………17

Figure 2.4: Effect of transport on growth through the formation of capital stock………18

Figure 2.5: Traditional view of the effects of transportation infrastructure investment....18

Figure 2.6: Modern link between transport investment and economic growth...………..19

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Acronyms

GDP Gross Domestic Product

ERA Ethiopia Road Authority

UNESC United Nation Economic and Social Conference

WTO World Trade Organization

AfDB Africa Development Bank

SSA Sub-Saharan Africa

AU Africa Union

UNECA United Nation Economic Commission for Africa

AADT Annual Average Dial Traffic

CIP Capital Investment Plan

UNECAP UN Economic Commission for Asia and Pacific

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1. Introduction

Transport has a necessary role to play for Economic growth and Social development of a

country. The existence of infrastructure in general and transport infrastructure in particular is

very crucial to any nation’s economic and social development.

The transport sector plays a role of outstanding importance in any national economy, both

through its own direct contribution to GDP and employment as well as through the provision of

services which are indispensable for the development of all other economic sectors. They

comprise urban, national regional and international import, export and transit flows of goods and

passengers.

According to the study taken by Feredic, 2005, and Charles, 2004, transport infrastructure is

makes cities engines and occupies an important role in a country’s commercial life, industry and

in the overall economic growth and development of any given economy.

It is true that improved transport is basic to the development in social, political and economic

fields. The cornerstone of any market based economy is an efficient system for supplying

production and business inputs and distributing outputs. The movement of any economy to a

higher level is dependent on making more efficient use of transport facilities (Tefera and

Alemayehu, 1996:5).

This evidences’ testify by Amadi, 2013 studies that identify the potential significance of

transport development for investment, trade, growth and poverty alleviation has long been

recognized. According to this not only does transport infrastructure facilitate the direct provision

of services to consumers, it also provides intermediate inputs that enter into the production of

other sectors and raise factor productivity. By lowering the cost and reducing the time of moving

goods and services to where they can be used more efficiently, transport development adds value

and spurs growth.

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Consequently, other Evidences testify to the fact that adequate and efficient physical

infrastructure, in general and transport in particular, are among the most essential inputs for

poverty reduction via direct and indirect channels (Tassew and Walter, 2004:139).

In most developing economies that are landlocked country like Ethiopia Road transport is one of

the most popular and important modes transport. In the case of Ethiopia, the physical and

economic features as well as economic status of the population, make road transport the most

viable mode of transport, the country must give priority to develop its socio-economic

infrastructure. At present Ethiopia has no option but to develop and improve the quality and

accessibility of its Transport network.(ERA, 1996)

In other studies Gramlich, 1994 the services provided by the infrastructure capital stock for

instance power, transport; telecommunications, provision of water and sanitation are

fundamental to economic activity. Until the late 1980s, however, economists paid little attention

to the role of infrastructure in either theoretical or empirical studies. Since then, interest in this

issue has begun to increase largely as a result of a series of papers by which ascribed the

slowdown in US productivity growth to declines in investment in infrastructure.

According to Mustapha, 2011 transportation is a critical factor in the economic growth and

development. It is a wealth creating industry on its own inadequate transportation limits a

nation’s ability to utilize its natural resources, distributes foods and other finished goods,

integrate the manufacturing and agriculture sectors and supply education, medical and other

infrastructural facilities. There is the need therefore to maintain and improve the existing

transportation and build new infrastructures for a national wealth. The national wealth is the

growth domestic products (GDP) which is an indicator or measures of the rate of economic

growth.

As my studies reveals that view of future expectation it is observed that commodity movement

will increase in volume. The growth of commercial transport performance in the projection years

seems to mismatch the growth in the economic performance.

The results of the findings were used to suggest areas for further policy implications and area of

investments. The government should now consider the policy and regulatory frameworks and

give greater priority to investment in transport infrastructure. At the same time it should consider

giving the private sector the chance to highly participate in the transport industry to fill the gap.

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So in order to fulfill this gap the government and private sector must be identify the current

condition of transport sectors and the forecast for the future, this research helps.

1.1. Background of the study

In most developing economies like Ethiopia including study town transport is one of the most

popular and important in economic development at national and local level. In the case of

Ethiopia, the physical and economic features as well as economic status of the population, make

transport the most viable mode of transport, the country must give priority to develop its socio-

economic infrastructure. At present Ethiopia has no option but to develop and improve the

quality and accessibility of its road network. The economic structure of countries cannot be seen

at a glance as it is a much diversified concept in different terms

According to few researcher between developed and developing countries, even between

developed countries there is implicit and explicit difference in economic and social structure due

to availability and presence of service infrastructure. (Olga I., 2003)

This is justified that transport is an indispensable element of development and socio-economic

growth. As engines of economic integration, transport infrastructure and service facilities

constitute a precondition for facilitating trade and the movement of goods and persons. Long

perceived as a tool for accessing national and regional trade in a radically changing global

environment, transport infrastructure remains a pillar of development with a view to accelerating

growth and reducing poverty. As UNESC, 2007 stated that the challenges of globalization,

Africa is lagging significantly behind in the development of regional trade, particularly because

of the lack of reliable and adequate transport. Indeed, the existing transport facilities for trade are

completely outward-looking with the result that transport infrastructure and services have been

little developed and the physical network poorly integrated. Thus the idea of transportation

and economic development are interlinked. This is so because transportation is a

derived demand that is driven by the needs and desires to attain some other final

objective and thus as an economic development it stimulates demand from consumers

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and firms which in turn increases the demand for transportation services. (Kenneth and

Samantha, 2008, as cited in Kalkidan, 2015)

An economy that possesses high capital accumulation, moderate growth in its

population and growth in technological progress is said to be in the path of economic

growth. In other words, economic growth is a result of the rise in GDP. However the

idea of development is wider than this. For a country to be developed, its economy

should not only grow but should also be able to attain structural change. In other words

economic development is concerned with both economic and social well-being of the

society. Thus, growth is a necessary but not a sufficient condition for development

which is concerned with both quantitative and qualitative changes in the economy.

(Oyesku et al, 2013)

According to Seetanah, 2006, though decision makers and economists salute the importance of

transport capital development in fastening productivity and economic development, yet this has

received inadequate interest in the literature. Moreover most available research tend to focus on

the economic effect of aggregate public capital at national and regional level and they have been

mostly based on developed countries’ cases. Research using cross section data set for sample of

country like ours has even more scarce. Overall, most of them tend to establish positive impacts

of public and transport capital on growth not at country level they focusing at regional level

means that they focused by comparing country to country.

The Ethiopian economy continued its strong expansion in Fiscal Year 14 with real GDP growing

by 10.3 percent. Growth was driven mainly by the services sector specially expansion of

transport sectors. (World Bank Group, 2015)

In the study by Yetnayet, 2012 transport infrastructure generally influences the

interaction between or among intra and inters urban centers. It facilitates and ensures

exchange role of urban centers through market linkage, because urban centers are

interdependent. It gives more values to different land uses and urban activities such as

residential areas, industries, businesses, service centers, administrative activities etc.

Transport infrastructure also gives support to all urban utilities and ensures urban

mobility including study town.

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1.2. Statement of the problem

Transport plays a crucial role in urban development by providing access for people to education,

markets, employment, recreation, health care and other key services. Especially in cities of the

developing world, enhanced mobility for the poor and vulnerable groups is one of the most

important preconditions for achieving Millennium Development Goals.

According to Cesar et al, 2010, transport infrastructure has a detrimental role in affecting

positively or otherwise, the efficiency of the primary and secondary economic sectors that

require input-output movements are very much dependent on this particular sectors.

According to European Commission, 2008, transport infrastructure is a key element for the

economic growth and development and it plays a fundamental role to achieve the Lisbon

objectives to increase growth and jobs in Europe. (EUC, 2008)

As Robin et al., 2008 suggest that roads, bridges, rail lines, ports, and airports deliver economic

and social benefits by connecting firms to international and regional markets, and by enabling

individuals to reach water, fuel, schools, clinics, jobs, and relatives.

Globally meeting of the infrastructure gap in Latin America and the Caribbean would require

countries in the region to boost investment as a share of GDP from the current rate of 2% to

5.2%. After major investments in telecommunications two decades ago, the region lags in

transportation and water infrastructure. Due to this gap they put more focuses toward the

provision of transport infrastructure and telecommunication which lead the most driving force of

economic development of the region. (Michael et al, 2013)

Sub-Saharan Africa’s cities have strikingly underdeveloped urban networks, reaching only about

128 meters of road per thousand residents compared to 700 meters per thousand in the low

income countries of the developing world. Urban connectivity is based on the concept of ready

access to a one lane paved road capable of supporting year-round access by a bus service or

equivalent motorized vehicle, such as an ambulance or a fire engine. (Robin et al., 2008)

According to Ibrahim Worku 2011 Ethiopia is one of the countries of Sub-Saharan Africa and

since 1993/94, the Ethiopian government has been implementing various reforms that have

involved the processes of structural adjustment programs along with commercialization of

agriculture, private sector development, and a number of related poverty alleviation programs.

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Successful implementation of the programs requires an efficient infrastructural system. In

particular, transport infrastructure is supposed to create a network over a wide array of

infrastructural facilities. In addition, the road transport sector is essential for developing

countries for the reason that provision of other advanced means of transportation is expensive.

For instance, Fan and Rao, 2003, as cited in Ibrahim Worku, 2011) citing numerous studies,

indicated that public spending in urban infrastructure is one of the most powerful instruments

that governments can use to promote economic growth and poverty reduction and among these

services road transport sector is considered as the crucial one.

Even though decision makers, different researchers and economists in the above addresses the

importance of transport capital development in fastening productivity and economic

development, yet this has received inadequate interest in case of local economic development.

Moreover most available research tend to focus on the economic effect of aggregate public

capital at national and regional level and they have been mostly based on developed countries’

cases. Research using cross section for the sample local economic development is very scarce.

Overall, most of them tend to establish positive impacts of public and transport capital on

growth. It should be again this study mostly focused on the study of impacts of transport

infrastructure provision on local economic development in the case study of Aweday town which

is one of the reform towns in Oromiya Regional state. Generally, this study describes the current

situation of transport infrastructure and overview the overall transport infrastructure provision in

the town using existing data, analyze the impacts of transport infrastructure provision on local

economic development especially by using household income, accessibility to the transport and

Mobility of the residence is not researched before, so this researcher forwards provision of

transport infrastructure and lastly the researcher forward the situation of transport infrastructure

provision and management and recommend the results.

1.3. Objectives of the Study

1.3.1. Main objectives of the study

The main objectives of the study are to conduct the impacts of transport infrastructure in

development of Aweday town and to identify transport infrastructure provision and management

challenges of Aweday municipality.

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1.3.2. Specific Objectives of the study

Based on the general objectives of the study above, the study seeks to achieve the following

specific objectives

To present the current situation of transport infrastructure of the town

To overview the overall transport infrastructure provision process and identify the challenges of

provision in the study town

To analyze the impacts of transport infrastructure provision on local economy of the town

To forward situation of transport infrastructure provision and management

1.3.3. The research Questions

This study is intended to answer the following questions with regard to transport infrastructure in

Aweday town.

What is the current situation of Transport infrastructure in Aweday town?

What are the overall transport infrastructure provision process and major challenges during the

provision of transport infrastructure in the town?

What are the major impacts of transport infrastructure provision on the economic development of

the town?

What are the options exist for transport infrastructure provision and management?

1.3. The Hypothesis of the study

There is no significant relationship between the socio-economic development of the town and

condition of transport infrastructure.

1.4. Conceptual Definition

Transport or transportation is the movement of people, animals and goods from one location to

another. Modes of transport include air,rail, road, water, cable, pipeline and space. The field can

be divided into infrastructure, vehicles and operations. Transport is important because it enables

trade between persons, which is essential for the development of civilizations.

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According to Ethiopian transport proclamation no. 468/2005 "Transport" means any transport

service undertaken on road, railway and water by motor power carriers.

(Federal Negarit Gazeta, 2005)

Economic development refers to progress toward a community’s economic goals such as

increased employment, income, productivity, property values, and tax revenues

1.6. Significance of the study

Although transport infrastructure has significant role in the development of the town and cities,

Aweday town is facing the challenge of accessibility and affordability of the transport

infrastructure in Aweday town condition of the town is subtropical (Weina Dega) and has diverse

population If there are accessible transport infrastructure provision; they would decrease

problems related to transport infrastructure provision and maintenance. But in the town the

Transport infrastructure network is poor in quality and even not exist some parts or not properly

maintained, and accessibility especially in asphalt, Gravel, and cobblestone Transport

infrastructures. Generally Transport infrastructure improvement and provision does not given

attention by the Regional Transport infrastructure Authority and the town itself.

This study has the following significance:

For an academic purpose for future preparation of research related to transport infrastructure

provision

Guide urban actors in Aweday Town how they can improve and plan the transport

infrastructure.

An input for the preparation of mobility network and transport infrastructure follows

during master plan preparation time of the Town plan.

It helps the town administration to access the transport infrastructure

Recommend and increase awareness about benefit of having improved transport

infrastructure for decreasing time of travel and providing goods and services on time to

and from the town.

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1.7. Scope of the study

The study will have both conceptual and spatial (geographic) bounders. Conceptually, it will

focused only impacts of transport infrastructure provision on development of the town. This

Study will be focused geographically only the impacts of transport infrastructure provision on

development of Aweday town so it can be include only the area under the Aweday Municipality.

1.8. Description of the study area

1.8.1. Location of the Study Area

Aweday is located in East part of Ethiopia in Oromia region East Hararge Zone at a Distance of

510 km from Addis Ababa and 13 Km from Harar the Harari region capital Harar. And it is

38km far from Dire Dawa in South West and 115 km far from Jijiga town of capital city of

Somili Regional States. The town is bordered by Haromaya Woreda in the north, in the south

still Haromaya Woreda, Harari Regional State in the east and by the Haromaya town in the west.

Aweday town is located the main Transport infrastructure that cross the country and pass to the

capital city of Somali land Hargeysa so it is busy Transport infrastructure due to the above

reason. And its total area of its that covered by structural plan 2006 is 2405km wide at present.

(Aweday, 2006)

1.7.2. Foundation

Before its establishment, the area of Aweday was covered with forest and Didimtu Lake

according to information from elderly. The city was founded in 19th century as a village and the

main factors for its foundation includes its problems of rob and military camp established in

Hammeresa, due to the above region traders of Chat in order to survive their trade they gone to

Didimtu area and began to exchange chat there and establish the town of Aweday today.

Aweday town has got its present name from the one person who living there for many years and

died there his name is known as waday the name Aweday derived from this person name

community living in the town. From its beginning it started to lead under Haromaya town as a

one kebele up to 1991 EC. But after many series question raised by the people in 1991 Oromia

Development Bureau gave its own structure to lead itself in 1999 EC Oromiya Urban

Development Office take this town as one of the town which is classified it as one of the reform

towns in the region.

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1.7.3 Demographics

The first, second and third censuses carried out at national level in 1984 ,1994 and 2007; put the

population size of Awaday town at 3,486 and 3,925, and 7,686 respectively. The Analytical

statistical report released by CSA in 2011 provides population size at 9,096. Based on the trend

observed in the past, and incorporating the population from the expansion area the current (2012)

population size of the town is reckoned to be close to 23,863 including the population of

expansion area. (Aweday CIP, 2006-20)

1.7.2 Topography

The topographic feature of is morphologically apart from volcanic and tectonic activities. There

is no hazardous area in the town. Aweday Town has ups and downs (undulation features). In its

topography. The average altitude of built able area is about 1960-2000 meters above sea level.

And longitudinal location of the town is 9° 21' 37.38" N 42° 2' 45.94" E. (Aweday, 2003)

1.8. Organization of the Study

The thesis will have five chapters. The first chapter will introduce the background of the study,

problem of the statement, objectives of the study, research questions, and significance of the

study, the scope of the study, conceptual definition, description of the study area, and limitations

of the study. The next Chapter will deals with the review of related literature. The third Chapter

will describes the research design. The fourth chapter will focus on data analysis, interpretation

and presentation. Finally, in the fifth chapter conclusions and recommendation of the research

report will be presented.

1.9. The Limitation of the Study

In the way of conduction of this Research we will have come across many problems. Some of

these problems include:-

Shortage of time to collect all data from all peoples of using and participating all people will be

difficult

There will be Shortage of finance

There will be Lack of organized and adequate data on transport infrastructure provision

in the Aweday town

In order to come up the limitation above the researcher will use the following methods

21

these are:

Sampling methods which is used in the researcher method and purposively method which

is used to identify and represent the whole peoples of the study area

Since the finance is not that much is enough to use the whole people the researcher will

use

In order to come up with the above limitation researchers uses the following methods:

- In order to solve the shortage of finance the researcher uses the sampling method and

purposively selected sector which can represents the study areas

- In the case of lack of data he uses data of different offices such as Transport office,

Traffic management office, Municipal office and Mayor office then organizes the data for

analysis.

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2. LITERATURE REVIEW

Transport Infrastructure is important for the services it provides. It is an important input to the

production process and raises the productivity of other sectors. This infrastructure connects

goods to the markets, workers to industry, people to services and the poor in rural areas to urban

growth centers. Consequently, lowers costs, enlarges markets and facilitates trade. Thus,

infrastructure provides services that support economic growth by increasing the productivity of

labor and capital thereby reducing the costs of production and raising profitability, production,

income and employment.

2.1. Definition of some Key concepts used in the topic of the study

Major concepts used throughout this paper.

Transport refers to the supply system enabling people and goods to move or be moved within a

defined area. Urban transport refers to such a system at the level of an urban or metropolitan

area. A transport supply system typically includes infrastructure (fixed installations), vehicles

and operations; operations refer to the way in which infrastructure and vehicles are operated, as

well as the enabling environment such as financing, legal frameworks and policies. (Torrisi,

2009)

Transport infrastructure includes linear installations (such as roads, railways and waterways)

and terminals (such as railway stations, bus stations and trucking terminals). Transport services

include bus systems, taxi fleets and rail services.

Public transport refers to transport services available to the public (as opposed to private

transport). Public transport services can be supplied by public or private operators, with or

without predetermined schedules, routes, stops, fares and subsidies. Private operators can be

23

formal (officially recognized by the public authority) or informal, and the state of informality can

in turn range from being ‘illegal’ and unregulated to being ‘legal’ and regulated.

Para-transit refers to public transport services supplied by informal private operators running

small to medium capacity vehicles (including motorcycle taxis, collective taxis, and mini-buses).

Non-motorized transport (NMT) refers to human powered modes (mostly walking and cycling);

motorized private transport refers to all other private modes (e.g. motorcycle, car, pickup truck).

Mobility refers to a group of users' ability, tendency and/or need to move, resulting in a transport

demand. Mobility therefore primarily refers to the demand side of a transport system.Transport

infrastructure and services are supposed to answer to existing and future mobility needs.

Accessibility according to Rodrigue 2006, “Accessibility is defined as the measure of the

capacity of a location to be reached by, or to reach, different locations. Therefore, the capacity

and the arrangement of transport infrastructure [and services] are key elements in the

determination of accessibility.”

2.2. Basic Theoretical Impacts of Transport infrastructure provision on economic

development

The theoretical foundation underlying the study is that provision or improvement of transport

services results in reduction of transport cost and/or travel time which in turn lead to increased

production. Improved transport, therefore, promotes social and economic development by

increasing mobility and improving physical access to resources and markets (IFAD, 2001).

Fromm (1965), World Bank (1994) and SACTRA (2000) treat transport as one of the factors of

production. It is universally accepted that the provision or improvement of transport services

results in reduction of transport costs. As transport cost decreases, the factor prices fall resulting

in the increased demand for input use or more output supply according to microeconomic theory

(Varian, 1992, 1999). Bhalla (2000) has similar argument. He goes ahead by saying that the

marginal cost decreases as a result of improved transportation. IFAD (2001), HMGN (1997) and

World Bank (2001) emphasize the role of rural transport for socioeconomic development. There

exists a massive theoretical literature about transport and development (Fromm, 1965;

Forkenbrock, 1990; World Bank, 2001; Baum and Korte, 2001, Sadoulet et al, 1995; Kessides,

24

1993; Banister et al, 2000; Berechman, 2001; Vickerman, 2001; Quinet et al, 2004; Bhalla,

2000; Polack et al, 2000; SACTRA, 1999 & 2000; Schelling and Lebo, 2001; Gannon and Liu,

2000; McCarthy, 2001; Boyer, 1998; Cole, 1998; Button and Pearman, 2001; Boyer, 1998;

Cole, 1998; Button and Pearman, 1985; Button, 1993; Dicky et al, 1980;

OECD, 2001). The authors recognize the important role of transport for social and economic

development of a country. I present reviews of some of the works below.

As the cost of transport declines, the production cost falls which may result in increased

production. Similarly when travel time is saved, more labor is available for production, which is

the same as an increase in labor supply, resulting in increased production. So the overall

activities expand with the provision of transport services. Investment in the transport sector can

improve access to economic opportunities by reducing transport costs and travel time. If markets

are reasonably competitive, this can result in lower prices for freight and passenger services. This

in turn can lead to lower prices for product and consumer goods, a spatial extension of the

market for production and consumption goods, higher personal mobility, and general higher level

of socio-economic activities (Schelling and Lebo, 2001).

25

Figure. 2.1. Relationship between cost and output

According to Bhalla (2000), the marginal cost decreases as a result of improved transport

services leading to expansion of production. Let me denote the marginal cost by MC1 without the

road situation. With the opening of the road, the transport cost decreases which results in a

downward shift of the marginal cost curve from MC1 to MC2. This in turn results in a total cost

saving of an area abcd for the certain level of output Q1 and an increase in output from Q1 to Q2

(Figure 2.1) (Bhalla, 2000).

Local farmers can benefit from the road transport because the cost of transporting agricultural

products to markets is reduced and the distance to breakeven locations is extended. This might

lead to more intensive cultivation and increased production of cash crops. Road transport can

further reduce production costs by lowering prices of delivered inputs, including equipment and

information (for example, through better agricultural extension services). The ultimate effect is

increased net farmgate prices and increased farm incomes although the extent to which this

happens depends on the competitiveness of the transport service market. All weather passability

of the road not only increases income from farming activities, but also makes prices more stable

and thus enables the poor to improve risk management and risk coping.

Figure 2.2. Price Bands

26

Source: Adapted from Sadoulet and de Janvry (1995)

Thus transport is the most important factor, which contributes to reduce the width of price bands.

As portrayed in Figure 2.2, there is a difference between the purchase and sale prices for the

rural households with poor access to road. The provision or improvement of transport services

reduces the transport cost of purchased and sale goods, which results in increase in farm gate

prices of agricultural products while decrease in the farm gate prices of agricultural inputs and

other consumer goods. The width of price band reduces due the improved transportation services

so the rural people get double benefits (Sadoulet and de Janvry, 1995).

Forkenbrock (1990) mentions that transportation services generate benefits by serving as an

economic tool used in transporting goods and people. The benefits of transportation investments

are strictly related to reductions in transportation costs. These investments foster economic

development by increasing net local income through cost reductions that exceed the cost of such

investments. A series of important issues should be taken into account when examining the

extent to which a transportation investment contributes to economic development. Transportation

infrastructure is one of the principal policy levers that state and local governments can use to

attract businesses and investors. The reason is that better accessibility to materials and markets

contribute to a comparative advantage. In order to place the relationship between transportation

investments and economic development in perspective, certain economic principles related to

public investment are presented as a means for stimulating private-sector activity. These

principles can apply as a sound conceptual base to the problem of how transportation

investments can best be used to foster economic development at state and local levels. Transport

infrastructure investment, however, acts as a complement to other more important underlying

conditions, which must also be met if further economic development is to take place. Additional

transport investment is not a necessary condition, but acts in a supporting role when other factors

are at work. In developed countries, where there is already a well-developed transport

infrastructure network of a high quality, further investment in that infrastructure will not on its

own result in economic growth (Banister and Berechman, 2001).

Most factors of production are positive determinants of aggregate output. Increases in the stock

of physical capital, for example, are typically associated with increases in aggregate output.

27

Thus, economic growth occurs when more factors of production become available and are put to

use. (Fedderke, et al, 2001)

Having developed a basic analytical framework within which to consider the infrastructure

growth relationship, discussion now proceeds to the positive potential linkages between

infrastructure and economic growth.

2.3. 1. THE ECONOMIC IMPACT OF URBAN TRANSPORT

The principal role of transport is to provide access between spatially separated locations for the

business and household sectors, for both commodity (freight) and person movements. For the

business sector, this involves connections between businesses and their input sources, between

businesses and other businesses, and between businesses and their markets. For the household

sector, it provides people with access to workplaces and education facilities, shops, and social,

recreational, community and medical facilities. (Eran, 2008)

Moving essentially from Barro (1990) and Aschauer (1989) many studies analyzing the

relationship between infrastructures and the economic development have been realized. On this

field there is a broad spectrum of theoretical viewpoints some of them diametrically opposed to

one another. A general consensus is achieved around the idea that basic infrastructure facilities

are important features related to economic performance. Apart from this main ideas opinion

differs greatly: both magnitude and causality remain subjects of debate.

Nonetheless, as research in the field progressed, disputes over this high impact of infrastructure

arose. Gramlich (1994), for example, pointed out that Aschauer (1989)’s approach was affected

by several problems. In relation to the magnitude of infrastructure impact he highlighted that

generally a positive public capital elasticity forces the choice between increasing returns of scale

and large factors rent, and that Aschauer (1989)’s work result in “pretty stratospheric estimates

of the marginal product of government capital” (Gramlich, 1994, p. 1186).

According to a recent African Development Bank (AfDB, 2013) Programme for infrastructure

Development in Africa (PIDA) report the continent’s large infrastructure deficit is holding it

back with road access rate of only 34%, compared with 50% in other parts of the developing

world, while transport costs are 100% higher. Poor infrastructure slows Africa’s per capita

growth by 2% annually.

28

Transport infrastructure impacts on both transport users and nonusers. It is therefore necessary

for the merits of transport proposals to be judged by their potential effect on all members of

society and not only on transport users, as was traditionally the case. This implies that effects

other than transport effects should also be studied.

Figure 2.3 illustrates the mechanisms on how infrastructure in general and transport in particular

affects economic growth and quality of life (Kessides, 1993). For example, provision or

improvement of transport services reduces the cost of transportation and travel time directly

which results in structural change through economic diversification, technological innovation,

changes in structure of production and consumption, personal welfare, labor productivity and

wealth. This will be finally reflected in reductions of costs of the most directly productive

activities (DPA) such as industry, agriculture, and services that use transportation services as

intermediate inputs.

29

Figure 2.3: Contributions of infrastructure

Source: Adapted from Kessides (1993)

The mechanism is as follows:

Provision of transport services ⇒ Transport cost ↓ ⇒ Cost of the DPA ↓ ⇒ Profitability ↑ ⇒ Investment ↑ ⇒ Employment ↑ ⇒ Output ↑

The development of transport contributes to economic growth through the formation of capital

stock (Figure 2.4). The development of transport influences capital stock in both private and

government sector. Real capital is formed in the transport sector and some private-sector capital

is also invested because of the development of transportation (Baum and Korte, 2001). This

means the investment in transport infrastructure crowds in private sector investment in the initial

stage of development.

Figure 2.4: Effect of transport on growth through the formation of capital stock

Source: Baum and Korte (2001)

Based on the traditional view, investment in transport infrastructure have two effects viz. direct

effects such as relocation, land rent and urban form, consumer and producer surpluses, and

production and transaction cost savings to be brought about by changes in accessibility, and

indirect effects such as externalities and multiplier effects (Figure 2.5).

30

Figure 2.5: Traditional view of the effects of transportation infrastructure investment

Source: Berechman (2001)

In fact the link between transport investment and economic growth is rather complex and multi-

dimensional. It is important to accommodate this complexity and causality in analysis and

recognize the multidimensional nature of the links between transport, location, development and

the many other factors relevant to our understanding of these processes (Figure 2.6). The main

idea underlying the relationship shown in the figure is that for transport-induced economic

growth to transpire, it is necessary that various economies be present in various markets. The

principal ones are firms’ agglomeration, transport network, labor market, land market and

environmental quality enhancements. Merely improving accessibility which translates into

reduced travel time and higher travel volumes would not be sufficient to generate growth

(Banister and Berechman, 2000).

31

Figure2.6: Modern link between transport investment and economic growth

Source: Banister and Berechman (2000)

In Ethiopia different researcher done on positive impact of Road transport infrastructure

provision on economic and social development, among this Asnake, 2006, on Road Frieght

Transport in Ethiopia with special emphasis on Addis Ababa – Djibuoti Corridor,

2.3.1. The Contribution of transport for economic development

The contribution of transportation to a country's development is high. Its share of contribution to

the GDP of a country is incontrovertible, though the nature and extent of the contribution varies

from country to country. Transportation plays a big role in what is known in both national and

international trade as invisible trade. It has been confirmed that its share in this respect in many

developed countries is as high as 26%. The role of transportation in the investment sector varies

between the developed and the developing countries. Because a good part of infrastructure

development has been taken care of in the developed countries, most of the investment there

focuses on automotive equipment, whereas the investment in the developing countries focuses on

infrastructure development. Of the total investment expenditure of developing countries, 30-35%

32

goes to infrastructure development, whereas in the developed countries the share of expenditure

for same is only 15-20%.

Currently the cost of transporting goods in Sub-Saharan Africa (SSA) is the highest in the world

(AfDB, 2013). Though wages are very low, the lack of reliable provision of roads in all regions

of SSA, seaports and other transport infrastructure makes it is extremely difficult for African

industries to compete in the global market. For example, African seaports are small by world

standards, poorly equipped and are associated with high costs due to outdate port-management

structures compared to ports in other developing regions, poor productivity and lack of

economies of scale. Container traffic in Africa, with the exception of South Africa, is still at an

early stage of development. Air transport remains also critical to Africa’s integration and

participation in an increasingly competitive world air transport market. However, inadequate

airport infrastructure and the unsatisfactory performance of many indigenous air transport

operators remains a major problem. According to a recent publication, the level of international

connectivity, measured in terms of the number of airports receiving direct international service,

is generally in decline with some exceptions. Railways have the potential to transform the

continent but currently play an insignificant role in Africa with rail density of 2.8km/1000km2.

The rail network is characterized by limited interconnection with very little electrified outside

South Africa, this is also true in case of our countries including study town. (Hoyle et al, 1973)

Investment in transportation infrastructure is critical to sustained economic growth. Mobility

studies show that transportation is absolutely essential to economic productivity and remains

competitive in the global economy. An international study found every 10 percent increase in

travel speed; labor market expands 15 percent and productivity by 3 percent. (Barrister and

Berechinan. 2000)

2.4. Classification of Transport Modes

Five transport modes have been witnessed so far in the history of humanity's technological

development: namely, road transport, water transport, rail transport, air transport, and continuous

flow system. Road transport consists of several types or modes, which are divided into two

main sub-categories: motorized and non-motorized.

Water transport is divided into local and international (marine) transport modes. Local

transport mode includes river, lake, and canal transportation as well transportation on huge dams.

33

Marine transport includes both cargo and human transport across seas or oceans between the

ports of the different countries.

Rail transport, which started about the time of the Industrial Revolution after the 1810s and

1820s, has been serving the world for nearly 200 years. There are many types of rail

transportation. The first phase featured a kind of train drawn by horses, followed by steam-

powered train, followed by the street car. Next came the different types of rail transport modes:

the regular surface railway, metro or subway, monorail, guided bus, trolley bus etc. The rail

transport system is classified as Light Rail Transit (LRT) and Heavy Rail Transit (HRT). The

other transportation mode, fairly recent in appearance and modern in its constitution, is air

transport. The appearance on the scene of air transport is historically linked to the use of balloons

for navigational purposes. But the basis for the development of the world's fastest transportation

system is the series of experiments undertaken by the Wright Brothers. Like the other transport

modes described above, air transport is divided into domestic and international, on the one hand,

and human and freight transportation on the other. Presently the world uses airplanes ranging

from the smallest, accommodating only one person (the pilot), to the largest, accommodating 350

people and traversing long distances across lands and oceans to connect the different parts of the

globe. (ERA, 1996)

2.5. A Brief History of the Development of Modern Transportation in Ethiopia

Modern transportation in the Ethiopian context, the reign of Emperor Menelik holds a cardinal

place. According to some writers, the idea of road construction started with the reign of Emperor

Tewodros, when he used manual labor for clearing land for a pathway across which to haul his

canon, the Sebastopol, to Mekdela. Since, however, the purpose of the roadway had nothing to

do with serving the public, let us limit our observation to the fact alone and pass on to the reign

of Menelik.

Using his close relationship with the government of Austria, Emperor Menelik imported the

roller, one of the technological products of the time, circa 1885-1887, Gregorian calendar. But

the building of the roadway itself on which this roller was operated carried out by clearing the

forest and leveling the land with a labor force drawn both from the governments army and the

public. Documents reveal that the first bridge to be built was that across the Awash, which took

34

place in 1886/87. According to the records, after the roller was transported to Addis Ababa,

Menelik had a 45-Kilometer stretch of road built through the combined labor of the military and

the civilian population, while the roller was simultaneously put to work on this same road, but it

did not take long for the machine to break down and be abandoned, never, it appears, to function

ever after. Different historical sources also point out that the first automobile came to Ethiopia in

1907/08, Gregorian Calendar, following which other cars with different models were imported

from England and Germany. The sources also point out that in 1908, Gregorian calendar; several

trucks were operating in Dire Dawa during the dry season. Given the cultural disposition of the

society at the time, those who were able to operate cars seemed to have satisfied themselves with

the idea of just driving the respective vehicles they owned, traffic laws and regulations being

alien to them until the years between 1915 and 1917.Gradually, however, oral directives and

orders were given both to vehicle operators and pedestrians. (Mekete, 1983)

Although the Italian invasion of 1935-41had inflicted damage on the country, it nevertheless had

its own contribution to the expansion of modern transportation. It has been reported that public

transportation, but especially taxi and bus services, started in Ethiopia during the Italian invasion.

(Ibid)

Although, according to historical records, the first motor vehicle operator was Emperor Menelik

himself, the first operator with a legal driver's license was Negadras Tesemma Eshete, who

learned the skill while he was in Germany. Regarding the promulgation of transportation codes,

the laws promulgated in 1934 and 1935 (Ethiopian Calendar) are considered the first written

laws. At the level of government offices, however, the first institution in charge of transportation

was the Road Transport Administration Bureau, which was established in 1960 prior to that, the

administration of most of transportation activities was the responsibility of a board and some

share companies under the jurisdiction of the Ministry of Transport and Communications.

Regarding the administration of other transportation systems, we find that rail transport

administration came into being along with the beginning of rail transportation in the 1910s. As

for air transport, Captain Mekonnen Beri tells us, in his book, “Aviation in Ethiopia” that the first

airplane came to Ethiopia in 1921. Following that, towards the end of the 1930s (more

specifically in1938), Ethiopian Airlines was legally established. Regarding water transport, the

Ethiopian Merchant Navy was established during the reign of Emperor Haile Selassie, towards

the end of the 1950s and the beginning of the 1960s, alongside which seaport and maritime

35

transport offices as well as maritime transport authority were mandated to administer the

country's international water transport system. (FDRE, 1995)

The 1950s and '60s constitute that period in the history of the development of our country's

transportation sector in which much was accomplished. The period was one during which many

agencies and companies were created and competitions among them to provide better services

and attract passengers and clients flourished. Consequently several laws and regulations related

to the administration of transportation were issued. After 1967/68, however, many things

changed, especially changes that brought the development of transportation to a virtual standstill.

Several transport companies were nationalized and brought under the jurisdiction of Freight

Transport Agency and Public Transport Corporation. Everything pertaining to transportation was

administered through zonal structures. (Ibid)

2.6. The Current Situation of the Ethiopian Transport Sector including study

town

The transportation branches for which data are available in Ethiopia are road transport, air

transport, rail transport and water transport. Of these four types, the biggest service provider is

the road transport branch. Accordingly, 90% of freight transportation both in the import and

export sectors and 95% of the public transportation services are provided by the road transport

branch. Whereas the majority of the urban population covers short- and medium-range distances

on foot, in the urban areas people for the most part travel on foot, save for those limited instances

where they use draught animals. It has been noted that the size of the population with access to

modern transportation in Ethiopia does not exceed 20% (Federal Transport Authority, Megabit

1998). When we look at the overall situation in the transport sector, we observe instability of

operation and, in some cases, deterioration.

2.7. Challenges in Transportation infrastructure in Ethiopia

Transportation infrastructure in Ethiopia has been neglected for decades, but is now apriority of

the government of Ethiopia. A large number of roads and railways are currently under

construction, and will be completed between 2011 and 2014. Over a third of the funding for

asphalt and gravel roads is being covered by the Ethiopian Government which is a considerable

shift in recent year’s financial scheme. About 10 years back the International Development

Agency, the European Union and Japan had supported the finance by allocating about90%

required.

36

According to AfDB, 2013 report significant investment is therefore required to address major

transport infrastructure deficit in the African continent. Increased budgetary constraints in the

public sector for investment and maintenance of transport infrastructure have increased the need

for effective transport infrastructure policies to attract private investment. The collaboration

between Africa's leading continental organizations, UNECA, AUC through the NEPAD

Planning and Coordinating Agency and the African Development Bank (AfDB) is designed to

address the transport infrastructure deficit. The 12th Assembly of Heads of State and

Government adopted Declaration requesting the African Union Commission (AUC) to formulate

the Programme for Infrastructure Development in Africa (PIDA).

RESEARCH METHODOLOGY

3.0. Introduction

This section will addresses thesis design, method of data collection, sampling

techniques; sample size determination, target population, sample frame, sample units,

source of data, data analysis and interpretation, operational definition of variable, data

analysis and data presentation, and limitation will be explained in detail together with

their justification in each sub-topic accordingly.

3.1. Operational Definition of Variables

Transport in this research is defined as the act of moving peoples, goods and etc from

one location to another and it is considered as

37

Infrastructure: Infrastructure defined in the study as hard component that comprises

all systems of urban physical structure that are mainly laid under the ground (e.g. Water

mains) and on the ground (e.g. Roads) or above the ground (e.g. telephone and electric

lines) to provide public service.(Litman, 2016)

Mobility means having transport services going where and when one wants to travel; being

informed about the services; knowing how to use them; being able to use them; and having the

means to pay for them.

Accessibility refers to people’s overall ability to reach services and activities, and therefore the

time and money that people and businesses must devote to transportation. The quality of

accessibility has tremendous direct and indirect impacts. Economic development: in this

research economic development is defined as the

3.2. Research design

3.2.1. Research type

The study will utilizes explanatory research type, the justification for using this

research type is that, this research try to explain why certain thing will happened as

they are tries to identify causal relationship between variable (Crotty, 1998). So that the

causes of development of urban area

3.2.2. Time Dimension of the research

The study will also employs cross sectional study design.

3.2.3. Research strategy

The study will utilize survey research strategy. Because the survey research is a strategy

that canvases percapita of social phenomena or reality by collecting information from

sample or whole population using questionnaire (Crotty, 1998). Hence, it produces

information which is extensive and fairly generalizable. For the purposes of this study

open (inductive) and structured (deductive) qualitative survey will uses. To this end, the

in depth interview manuscript will uses as open qualitative survey. To get reliable data

study will uses key informant in depth interview, focus group discussion and semi-

38

structured questionnaires. The study will also uses both probabilistic and non-

probabilistic sampling methods where households will be selected as sampling units

3.2.4. Research Approach

This study will uses both the qualitative and quantitative research approach.

“Quantitative methods are designed to study variables that can be measured in numbers

and also defines qualitative approaches as inquiry process understanding social or

human problems on building complex and holistic picture formed with words and

reporting detailed views of respondents” (Crotty, 1998). Thus the two approaches will

be uses inseparably during the research process.

3.3. Questionnaire

The semi-structured questionnaires will uses to gather information about the impacts of

transport infrastructure provision on individual percapita income and the development

of the economy. The questionnaire will prepared in English and translated to Afan

Oromo; the local language all ethnic group in the town speak. Further for the collection

of information the enumerators will selects from local community and will trains. There

by the enumerators will fills the legionnaire by reading the prepared questions for the

respondents.

3.4. Interview

To executes this study the researcher will conduct unstructured face to face interview

with the town mayor office and transport office of the Aweday town, mayor of the

town, municipal leader, and transport office and well known elders from the town

because they will give for the research the real information about the impacts of

transport infrastructure provision on local development.

3.5. Sampling Techniques

(Kumar, 2002), stated that an optimum sample is one which fulfills the requirements of

efficiency, representativeness, reliability and flexibility while taking in to consideration the

constraints of time and cost. According to him even if there is no fixed rule in determining the

39

size of a sample to be taken from a given population, there is a general guide line which needs to

be considered for determining adequacy of sample size. He suggested that as the size of a sample

varies inversely with the size of the population, a larger proportion is required of a smaller

population where as a smaller proportion may do so for a bigger population.

Different authors use different formula to determine the sample size of the study. For the purpose

of this study the formula set by Kothari (2004), in order to determine the sample size of the

population which is less than 10,000 the sample size is calculated by using the following

formula.

For N< 10,000, n= z 2 pq

d2

Where N= population size (7,652)

n= Desired sample size

Z= Standard normal variable at 93% confidence level (1.81)

p= estimated characteristics of the target population (0.5),

q= 1-p,

d= level of statistically significance set 5% margin of error (0.05).

To determine the sample size: Z= 1.81, p= 0.5, q= 1-p, d= 0.07

n= (1.81) 2 (0.5) (0.5) n, =3.2761 ×0.25 = 167

(0.07)2 0.0049.

Fn= n/1+n/N= 167/1+167/7,652=164

3.5.1. Population Universe

The first, second and third censuses carried out at national level in 1984 ,1994 and 2007; put the

population size of Aweday town at 3,486 and 3,925, and 7,686 respectively. The Analytical

statistical report released by CSA in 2011 provides population size at 9,096. Based on the trend

observed in the past, and incorporating the population from the expansion area the current (2012)

40

population size of the town is reckoned to be close to 27,863 including the population of

expansion area and total household for both sex is 7,652 (Aweday CIP, 2006-20)

3.5.1. Sampling Frame

In order to confirm generalization and validity of the study, taking sufficient sample size and

utilizing sample technique will be given special concern. The sample frame will be the list of the

above stated 164 households of Aweday town and 9 employees of different will be selected.

3.5.2. Sampling Unit

The sampling units will be drawn from the sampling frame. Sampling units are a units or sets of

units considered for selection at a stage of sampling. Therefore, the sampling units are the

sample of all households of Aweday town and purposively selected employees of the offices

3.5.3. Sampling Size

Aweday town now it separated into three kebeles with the rural area under it since 2014 and it

composed of people of different sexes, ages, professionals and educational background. Sample

survey is 164 households to be selected by systematic sampling from total households and 9

respondents purposively will select from, the three offices of town administration, and well

known elder people of the town. And the total sample size of the researcher will be 173 peoples.

Sample interval= Total household/Total sample size=7652/173= 44th

3.6. Sources of Data

The study will be uses both primary and secondary sources of the data. Both of the data will be

discussed as the following:

3.6.1. Primary Data Sources

The primary data sources will be obtains from the officially registered household of Aweday

town by the orally administered questionnaires, the in depth interview and the focus group

discussion will be conducts with purposively selects employees and well known elder people of

the town.

3.6.2. Secondary Data sources

Secondary data will be obtains from relevant books, working papers, previous researches reports,

unpublished materials and other related documents.

41

3.7. Data Analysis and Interpretation

The data that are collected by both primary and secondary data collection will be analysis or

interprets using figures, tables, percentages, frequencies and averages, bar graph, photos and pie

chart.

3.8. Data Presentation

The finding of the study will be presents by using tables, paragraph, photos and pie charts.

Specific objective Concept Variable Method of

data

collection

Method of data

analysis

To identify the current

situation of transport

infrastructure in the town

Availability

and

Accessibility

Time, cost human and

financial resource adequacy,

level of coordination,

availability quality of

services, level of performance

levels

Questionnaire

Personal

interview

Multivariate

regression

analysis using

SPSS

To describe the overall

transport infrastructure

provision process and

identify major challenges

during provision of this

infrastructure

Transparency

and

accountability

Availability of work flows,

responsibilities, standards and

enforceability, clarity and

awareness, availability of

standards, customers and staff

awareness’

Observation,

Interviews,

Records

Description of

facts and

characteristics

Research objective Concept Variable Method of

data

collection

Methods of

data analysis

42

Identify major impacts of

transport infrastructure

provision on economic

development

Effective and

efficient use

of resource

Household income, socio-

economic,

Observation,

documents of

offices

Descriptive

Analysis

To forward and a

recommendation to solve the

problems

Equity and

inclusiveness

Equal and fair distribution of

resources and services

Observation

documents of

offices

Descriptive

Analysis

3.9. Operationalization (Logical) Framework

3.9. Limitation

There might be operational and logical limitation for this study such as lack of adequate data on

topic under study, the impacts of transport infrastructure provision is not really documented by

any sectors, and some official and expertise might be unwilling to conducts interviews due to

shortage of time or busy with their work and long appointment time to carry out an interview

might be there. To overcome these short comings the researcher will uses frequent visit to get

officials using their telephone. In addition the researcher will convince the academic purpose of

the study; the benefits of the study and its confidentiality to the respondents

43

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Appendix A

TIME TABLE AND BUDGET BREAKDOWN OF THE STUDY

Time Table for the activities

s/no Activities Nov Dec Jan. Feb Marc

h

Apri

l

May June

1 Research Topic Selection

2 Consulting With the Coordinator

About the Topic

3 Topic Approval

4 Search for Literature Reviews

5 Developing Thesis First Draft

Proposal

6 Submission of First Draft Proposal

7 Revision of Thesis First Draft

Proposal

8 Submission of Second Thesis

Proposal

9 Revision of Thesis Second Proposal

10 Submission of Final Proposal

11 Approval of Final Proposal and

Clearance

12 Data Collection

51

13 Data Analysis and Report Writing

14 Submission of First Draft Paper

15 Submission of Second Draft Paper

16 Submission of Final Paper

17 Complete the Research Paper

18 Submit the Final Paper

19 Presentation and Defense of the Paper

Appendix B

Budget Plan for the Thesis

Although money is not the only thing that contributes to the quality of any type of research work,

it has a significant contribution too. This research, as it can be seen in the table below, will incur

an estimated cost of 18123 ETB.

S/no Items required Unit Quant

ity

Cost per unit in it.

Birr

Total cost ofit.

Birr

Birr Cent Birr Cent

1 Stationary

Paper Ream 4 100 00 400 00

Pen Packet 1 95 00 95 00

Pencil Packet 1 15 00 15 00

Rubber Packet 1 6 00 6 00

Sharpener Packet 1 18 00 18 00

Note Book Number 1 40 00 40 00

Subtotal 1 574 00

2 Equipments

Binder Pieces 6 15 00 90 00

52

Field Bag Number 1 600 00 600 00

Rewritable CD Number 10 20 00 200 00

Flash memory 8GB Number 1 270 00 270 00

Subtotal 2 1,160 00

3 Travel cots

Premium of researcher for data

collection

Day 30 222.3 10 6,669 00

Transportation cost Trips 4 175 00 700 00

Wage for assistant data

collectors

Day

*persons

10*5 140 00 7,000 00

Subtotal 3 14,69

9

00

4 Communications

Fax Page 20 10 00 200 00

Email charges Minutes 150 0 40 60 00

Mobile Cards Number 10 50 00 500 00

Subtotal 4 760 00

5 Publication

Printing the materials from the

internet

Page 300 0 75 225 00

Secretarial services or entering

the data into the computer

Page 100 3 00 300 00

Printing proposal Page 40 0 50 20 00

Photocopy of questionnaires Page 320 0 50 160 00

Printing first draft paper Page 100 0 75 75 00

Printing second draft paper Page 100 0 75 75 00

Printing final paper Page 100 0 75 75 00

Subtotal 5 930 00

53

6 Grand subtotal 1631

1

00

7 Contingency 1812 30

8 Grand total 1812

3

30

APPENDIX B

INSTITUTES OF URBAN DEVELOPMENT STUDIES

DEPARTMENT OF URBAN INFRASTRUCTURE PROVISION MANAGEMENT

QUESTIONNAIRE (TO BE FILLED BY RESPONDENTS)

Dear Respondent: I, Nasir Ousman, am student at the Ethiopian Civil Service University,

Institute of Urban Development Studies. This questionnaire is designed to assess the Impacts of

Transport infrastructure Provision on local economic development, the case of Aweday town of

Oromia Regional state.

The information you provide in this questionnaire will be kept confidential and the researcher

would like to assure you that data will only be used for academic purposes. Therefore, I would

kindly request you to carefully read the questions and give your valuable answer to each

question. Your genuine and frank response to the questionnaire is highly important for the

achievement of the objectives of this research. Please provide your response as per the

instruction. Tick (√) in the given box and write your answer on the blank space for open ended

questions. No need to write your name on this questionnaire.

Thank you in advance

54

Part one: General information/ Personnel data

The following questions are about your position and other personal information. Completion of

this information is voluntary & confidentially is assured. No individual data will be reported

1. Sex

Male Female

2. Age

Under 26 27 to 35 36 to 55 56 to 65 66 or older

3. Level of education

Under 12 12th complete Certificate Diploma

Bachelor’s of degree Masters Degree and above

Part two: to the current situation of transport infrastructure

This section questionnaire relates to your level of awareness and knowledge regarding the

physical conditions of transport infrastructure in Aweday town. With each statement

please provide your response in the space provided

1. How do you evaluate the existing transport infrastructure of your town?

Very Good Good Satisfactory Poor Very Poor

2. Is there any measure taken by any sectors of the town exist to improve transport infrastruc-

ture accessibility and Mobility inyour residential area?

Yes No

3. If your answer for question 1 is “Yes” which type of transport infrastructure is provided in

your residential area?

Municipal Mayor Office Transport Sector of the town

Others (Specify)__________________________________________________________

4. Do you think that in all kebeles and villages under the municipalities have available trans-

port infrastructure?

55

Yes No

5. If your answer for question 4 is “No” which type of transport infrastructure is available if

not why?

_________________________________________________________________________

_________________________________________________________________________

6. How do you see the transport infrastructure in the town specially road infrastructure?

Very Good Good Bad Very Bad

7. Is there available mode of transport infrastructure in the town?

Yes No

If yes which type is available _______ if no describe the reason____________

Part Two: Over all transport infrastructure provision process and challenges during provision

8. How do you see the importance of transport infrastructure provision process of in the

town?

Very important Moderately important Not important

9. Is there available budget for provision and maintenance of transport infrastructure of the

town?

Yes No

10. If question no. 9 is “yes” describe the reason _______________________________

If “No” what measures will be important__________________________________

11. What are the main challenges of transport infrastructure provision process in the study

town?

Absence of Available Budget

Weak transport policy implementation

56

APPENDIX C:

GUIDING QUESTIONS FOR INTERVIEWS WITH A KEY INFORMANT (TOWN

MAYOR OFFICE, MUNICILITY, TRANSPORT SECTOR OF THE TOWN)

DEAR RESPONDENTS,

The only purpose of this interview is to gather primary data for award of master Degree in

Urban Infrastructure Provision and Management. since its aim is only academic purpose,

respondents should give the correct information without being influenced with any kind of

imposition. Respondent’s identity and other information will be kept confidential. If you

are not interested, you are free for not to fill this questionnaire. I am grateful to your ef-

forts, time and cooperation in advance.

Over all existing transport infrastructure related question

57

12. How do you see the Availability of Transport infrastructure in the town?

13. What measures taken by transport sector of the town to provide the infrastructure which is

not available in the town?

14. What are the major impact that are existed due to the inefficiency and absence of transport

infrastructure on local economy

Challenges which hinder the provision of transport infrastructure

1. What are the main challenges that hinder transport infrastructure provision in the study town?

2. Is there any problems or challenges that face economic development of town due to absence

of transport infrastructure

3. What measures taken to tackle the challenges of transport infrastructure provision process by

any government body?

4. How do you evaluate the current process of transport infrastructure provision in the town?

5. What do you think for the improvement of transport infrastructure to provide accessible and

affordable?

Impacts of Transport infrastructure provision on economic development

1. What are the major impact of transport infrastructure provision in economic

development?

2. Describe the relationship between transport infrastructure provision and number of

unemployment in the town?

58