Impact of Transportation and Road Network on Goods Delivery by Food Industries in Nigeria as a Total Factor of Productivity (TFP)

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue IX, September 2019 | ISSN 2321–2705

Impact of Transportation and Road Network on Goods Delivery by Food Industries in Nigeria as a Total Factor of Productivity (TFP)

Deborah Tosin Fajobi^1*, Damilola Toluse Ajibesin², Olasupo Oladiran Tayo³

^{1, 2,3}Department of Agricultural Economics, Open and Distance learning Centre, Ladoke Akintola University of Technology, P.M.B 4000, Ogbomoso, Nigeria
^*Corresponding Author

Abstract: – This study examines the impact of transportation and road network services on the productivity of food industries in Nigeria. Using Cobb-Douglas results shows that transportation(days to clear customs for imports) increase productivity by 0.01percent and also shipment losses (fraction of sales lost) due to breakage, theft, spoilage or other deficiencies of the transport mean reduces productivity of the food industry with 0.01 percent. The Total Factor Productivity (TFP) was estimated as the residual of the Cobb-Douglas function fitted with and without transportation.

Keywords-Transportation, Productivity, Nigerian food industries

I. INTRODUCTION

In any physical and economic development of towns and cities all over the world, transportation is very important.
Transportation infrastructure is critical to sustain economic growth as it improves the standard living of people and they see increased income as the way to achieve the goal.Bailey, Mokhtarian and Littlel (2008), said transportation route is part of distinct development pattern or road network which is mostly described by regular street patterns as an indispensable factor of human existence development and civilization.
Mobility studies showed 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; labour market expands 15 percent and productivity by 3 percent (Barrister and Berechinan. 2000). Road network is among the important part of infrastructure in most countries in which most of the goods is transported by road.
Food industry is one of the largest and most complex sectors in the economy of Nigeria; it is a series of interdependent and complementary industries which encompass the functions of growing, processing and distributing products from the manufacturer to ultimate consumer. It is transportation that provides the link between these industries and the functions.

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