An Analysis for Reduction in Economic Loss from Damage Accident in Use of Transport Modes: A Comparative Study

Abstract

One way in which the use of mechanized transport has negatively affected the economy of nations is the devaluation and destruction of properties and investment worth through damage accident. Damage accident in this case refers to accidents that caused economic losses through destruction of properties and investments involved. The study analyzed the economic loss due to damage accident and the trend in maritime and road transport modes. The aim of the study was to determine the effect of damage accident on the Nigeria economy and to compare the trend of the economic cost of damage accident between the two modes. The insurance award approach used by Hopkins et al. (1991) was  used to determine the economic loss of damage accident in both modes while regression analysis was used to analyze the impact of damage accident cost in both modes of transport from 2001 to 2010 on the Gross Domestic Product of the transport sector (GDP transport) over the same period. Descriptive statistics was also employed and the difference of means of damage accident economic cost in both modes, determined. The null hypotheses were tested using T-test. It was found that while the economic cost of damage accident of the road transport mode has a significant impact on the Gross domestic Product of the transport sector (GDP transport), that of the maritime transport mode has no significant impact on the  GDP  transport. The quantitative relationships between damage accident economic losses of both modes of transport were also established. The researcher recommended that funding of transport safety and accident reduction programmes should be treated as investment by stakeholders, and not as an expenditure in which case stakeholders try to avoid the expenditure, leading to increase in damage accident cases. Also such funding for transport safety and accident reduction programmes should be target based.

Key words: Analysis, Reduction ,  Economic, Loss,  Damage Accident,  Use, Transport, Modes.