Transport economics in Lithuania

Upon creation of material values and rational location of the population’s communicational needs an important role fells on transport. It is necessary for implementation of transportation between companies, regions, and countries. The Government considers transport development to be the priority branch, which requires effort, tremendous investment and time.
The first step towards the above-identified direction is integration of Lithuanian transport into common European transport system.
2) Division related to services provided by various transports means.
Due to huge fixed expenses the transport infrastructure is of purely monolithic nature and its activity can no way be regulated via competition created on the basis of the market economy principles. Government has to regulate the optimal distribution of the resources. Yet experts consider the services provided by road and air transport to be differentiated activity, as the general system of the services may be divided into independent industrial units. Railway transport services may also be considered a differentiated activity, which is regulated in its own way.
Accordingly, from the point of view of transport companies, which exploit this sector, the optimal management of the economy will be detrimental. Therefore, sales price, i.e. infrastructure usage tariff, which in an optimal situation should be equal to the marginal price, turns out to be lower than the average price.
• There’s no increase in the average profitableness in the sector of transport services provision, with an exception of some non-differentiated railway services, where the revenue is calculated in a way, which is different from revenue calculation in the infrastructure of other transport branches.
• The decrease of marginal profitableness is characteristic of transport infrastructures sector, but the increase of marginal profitableness is detected in the railway transport infrastructure.
Demand and supply
The demand of transport depends on development of the industry, economy and other economy branches as well as the growth of the population....

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