IDEAS home Printed from https://ideas.repec.org/p/sek/iefpro/3205591.html
   My bibliography  Save this paper

Paratransit Mesoeconomy: Control Measures From The Supply Side?

Author

Listed:
  • Ofentse Mokwena

    (North West University)

Abstract

The South African Minibus Taxi industry has had to various degrees been affected by government intervention, in micro, and macroeconomic forms. Transporting on average 11.9% and 15% of education trips and 26.88% and 26.18% of working trips between 2003 and 2013 respectively, the minibus sector dominates the market second to walking (Statistics South Africa, 2014; 2003). Recent transport policies seem to discourage the dominance of private cars and minibus vehicles. Meanwhile, the Department of Trade and Industry has developed an incentive package for the production of minibus vehicles. In the microeconomy, transportation policy makers tend to focus on the travel market, whilst manufacturers focus on the demand for minibus vehicles. This study proposes and tests a framework to explore the extent to which travel and production microeconomic indicators relate to dynamic macroeconomic activity over time. This paper is an experimental exploration of statistical relationships between selected macroeconomic indicators (SMIs) and the national minibus economy measured in vehicle sales and prices. Sales data is sourced from the National Association of Automobile Manufacturers of South Africa (NAAMSA) and price data from a manufacture dominating the market. Firstly, are there statistically significant macroeconomic forces at play in the minibus economy? Secondly, do these SMIs relate to minibus sales data including sales price per seat, registered vehicle population, vehicle sales, market ejections per year and cumulative forms of this data? We investigate this through correlation (a) analysis of price data, (b) sales data, (c) vehicle population in the travel market and (d) SMI data between 2002 and 2011. This is a mesoeconomic study, bridging the policy gap between macroeconomics (i.e. CPI) and microeconomics (i.e. vehicle population in the travel market). Statistically significant relationships and path dependencies are revealed within the framework developed. Therefore mesoeconomic research in the transport economic sphere is significantly viable. One shortfall of the paper is that the microeconomic analysis is narrow because travel data and vehicle utilisation data is not included. Further quantitative research is required to inform a policy agenda that enables an understanding of macroeconomic forces (national and regional level) that filter through transport economic policy. This study lays a unique avenue to equip transit and automotive decision makers, industries and planners to better forge through changes in the macroeconomy in microeconomic contexts.

Suggested Citation

  • Ofentse Mokwena, 2016. "Paratransit Mesoeconomy: Control Measures From The Supply Side?," Proceedings of Economics and Finance Conferences 3205591, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:3205591
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/5th-economics-finance-conference-miami/table-of-content/detail?cid=32&iid=019&rid=5591
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Walker, Jarrett, 2008. "Purpose-driven public transport: creating a clear conversation about public transport goals," Journal of Transport Geography, Elsevier, vol. 16(6), pages 436-442.
    2. Mokhtarian, Patricia L. & Salomon, Ilan, 2001. "How derived is the demand for travel? Some conceptual and measurement considerations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(8), pages 695-719, September.
    3. Noland, Robert B., 2001. "Relationships between highway capacity and induced vehicle travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(1), pages 47-72, January.
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    5. Cervero, Robert, 1992. "Paratransit in Southeast Asia: A Market Response to Poor Roads?," University of California Transportation Center, Working Papers qt6533b9wk, University of California Transportation Center.
    6. Paulley, Neil & Balcombe, Richard & Mackett, Roger & Titheridge, Helena & Preston, John & Wardman, Mark & Shires, Jeremy & White, Peter, 2006. "The demand for public transport: The effects of fares, quality of service, income and car ownership," Transport Policy, Elsevier, vol. 13(4), pages 295-306, July.
    7. Hai Yang & Yan Lau & Sze Wong & Hong Lo, 2000. "A macroscopic taxi model for passenger demand, taxi utilization and level of services," Transportation, Springer, vol. 27(3), pages 317-340, June.
    8. repec:ilo:ilowps:358158 is not listed on IDEAS
    9. De Brucker, Klaas & Macharis, Cathy & Verbeke, Alain, 2011. "Multi-criteria analysis in transport project evaluation: an institutional approach," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 47, pages 3-24.
    10. Guillen, Marie Danielle & Ishida, Haruo & Okamoto, Naohisa, 2013. "Is the use of informal public transport modes in developing countries habitual? An empirical study in Davao City, Philippines," Transport Policy, Elsevier, vol. 26(C), pages 31-42.
    11. Salazar Ferro, Pablo & Behrens, Roger & Wilkinson, Peter, 2013. "Hybrid urban transport systems in developing countries: Portents and prospects," Research in Transportation Economics, Elsevier, vol. 39(1), pages 121-132.
    12. Walters, Jackie, 2008. "Overview of public transport policy developments in South Africa," Research in Transportation Economics, Elsevier, vol. 22(1), pages 98-108, January.
    13. Krygsman, Stephan & Arentze, Theo & Timmermans, Harry, 2007. "Capturing tour mode and activity choice interdependencies: A co-evolutionary logit modelling approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 913-933, December.
    14. Lakshmanan, T.R., 2011. "The broader economic consequences of transport infrastructure investments," Journal of Transport Geography, Elsevier, vol. 19(1), pages 1-12.
    15. Schalekamp, Herrie & Behrens, Roger, 2013. "Engaging the paratransit sector in Cape Town on public transport reform: Progress, process and risks," Research in Transportation Economics, Elsevier, vol. 39(1), pages 185-190.
    16. Barrett, Jane., 2003. "Organizing in the informal economy : a case study of the minibus taxi industry in South Africa," ILO Working Papers 993581583402676, International Labour Organization.
    17. Arentze, Theo & Borgers, Aloys & Timmermans, Harry & DelMistro, Romano, 2003. "Transport stated choice responses: effects of task complexity, presentation format and literacy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(3), pages 229-244, May.
    18. R. Bouyekhf & A. Abbas-Turki & O. Grunder & A. El Moudni, 2003. "Modelling, performance evaluation and planning of public transport systems using generalized stochastic Petri nets," Transport Reviews, Taylor & Francis Journals, vol. 23(1), pages 51-69, January.
    19. Nkurunziza, Alphonse & Zuidgeest, Mark & Brussel, Mark & Van den Bosch, Frans, 2012. "Spatial variation of transit service quality preferences in Dar-es-Salaam," Journal of Transport Geography, Elsevier, vol. 24(C), pages 12-21.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Plano, Christopher & Behrens, Roger & Zuidgeest, Mark, 2020. "Towards evening paratransit services to complement scheduled public transport in Cape Town: A driver attitudinal survey of alternative policy interventions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 273-289.
    2. Schalekamp, Herrie & Behrens, Roger, 2010. "Engaging paratransit on public transport reform initiatives in South Africa: A critique of policy and an investigation of appropriate engagement approaches," Research in Transportation Economics, Elsevier, vol. 29(1), pages 371-378.
    3. Edmond Daramy-Williams & Jillian Anable & Susan Grant-Muller, 2019. "Car Use: Intentional, Habitual, or Both? Insights from Anscombe and the Mobility Biography Literature," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    4. Mokonyama, Mathetha & Venter, Christo, 2018. "How worthwhile is it to maximise customer satisfaction in public transport service contracts with a large captive user base? The case of South Africa," Research in Transportation Economics, Elsevier, vol. 69(C), pages 180-186.
    5. Pronello, Cristina & Camusso, Cristian, 2011. "Travellers’ profiles definition using statistical multivariate analysis of attitudinal variables," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1294-1308.
    6. Enayat Mirzaei & Dominique Mignot, 2021. "An Empirical Analysis of Mode Choice Decision for Utilitarian and Hedonic Trips: Evidence from Iran," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    7. Joseph, Lucy & Neven, An & Martens, Karel & Kweka, Opportuna & Wets, Geert & Janssens, Davy, 2020. "Measuring individuals' travel behaviour by use of a GPS-based smartphone application in Dar es Salaam, Tanzania," Journal of Transport Geography, Elsevier, vol. 88(C).
    8. Carreira, Rui & Patrício, Lia & Natal Jorge, Renato & Magee, Chris & Van Eikema Hommes, Qi, 2013. "Towards a holistic approach to the travel experience: A qualitative study of bus transportation," Transport Policy, Elsevier, vol. 25(C), pages 233-243.
    9. Bouscasse, H., 2018. "Integrated choice and latent variable models: A literature review on mode choice," Working Papers 2018-07, Grenoble Applied Economics Laboratory (GAEL).
    10. Wang, Tingting & Chen, Cynthia, 2012. "Attitudes, mode switching behavior, and the built environment: A longitudinal study in the Puget Sound Region," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1594-1607.
    11. Kerzhner, Tamara, 2022. "Formalization of East Jerusalem public transport: Mobility, politics and planning," Journal of Transport Geography, Elsevier, vol. 105(C).
    12. Bucsky, Péter & Juhász, Mattias, 2022. "Long-term evidence on induced traffic: A case study on the relationship between road traffic and capacity of Budapest bridges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 244-257.
    13. De Vos, Jonas & Witlox, Frank, 2017. "Travel satisfaction revisited. On the pivotal role of travel satisfaction in conceptualising a travel behaviour process," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 364-373.
    14. Quaglione, Davide & Cassetta, Ernesto & Crociata, Alessandro & Marra, Alessandro & Sarra, Alessandro, 2019. "An assessment of the role of cultural capital on sustainable mobility behaviours: Conceptual framework and empirical evidence," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 24-34.
    15. Yueping Zheng & Liang Ma, 2022. "How Citizen Demand Affects the Process of M-Government Adoption: An Empirical Study in China," Electronic Commerce Research, Springer, vol. 22(4), pages 1407-1433, December.
    16. Márquez, Luis & Pico, Ricardo & Cantillo, Víctor, 2018. "Understanding captive user behavior in the competition between BRT and motorcycle taxis," Transport Policy, Elsevier, vol. 61(C), pages 1-9.
    17. Bouscasse, H. & Bonnel, P., 2016. "Socio-psychological determinants of mode choice habits," Working Papers 2016-05, Grenoble Applied Economics Laboratory (GAEL).
    18. Astrid Wood, 2015. "Multiple Temporalities of Policy Circulation: Gradual, Repetitive and Delayed Processes of BRT Adoption in South African Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 39(3), pages 568-580, May.
    19. Jesper Bláfoss Ingvardson & Otto Anker Nielsen, 2022. "The influence of vicinity to stations, station characteristics and perceived safety on public transport mode choice: a case study from Copenhagen," Public Transport, Springer, vol. 14(2), pages 459-480, June.
    20. Urbanek, Anna, 2021. "Potential of modal shift from private cars to public transport: A survey on the commuters’ attitudes and willingness to switch – A case study of Silesia Province, Poland," Research in Transportation Economics, Elsevier, vol. 85(C).

    More about this item

    Keywords

    paratransit; mesoeconomics; public transport production; industrial policy; minibus taxi;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iefpro:3205591. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.