Does Trade Development Depend On Road Network Quality?

Abstract

Market globalization today presumes a free movement of people, goods, and capitals, which, in turn, is intended to stimulate growth of various economic sectors and trade in particular. To this end, the development of a high-quality road infrastructure with large territorial coverage is an essential condition for the successful operation of any commercial enterprise. This study contributes to understanding how road network development affects the commercial activities of individual countries within the European Union. The correlation between domestic sales and road network length was assessed using official statistical data. The findings support the opinion that the coverage and level of development of transportation infrastructure strongly correlate with the increase of trade volumes although this relationship is manifested differently across its subsectors.