Demand for City Bus Transport Service in Mekelle, Ethiopia (Heckman Selection Model)

by Open Science Repository Economics
(July 2013)

Abstract

Transport system is an essential element in physical, economic and social structure of urban areas .It consists of infrastructure and service that permits economic agents to access the activities of cities. Rapid urbanization is taking place in cities of developing world where urban population is growing at an unprecedented rate. However, in adequate and poor quality infrastructure, mismatching between demand and supply, and increase rate of accidents are the serious challenges of the sector. This study examines the demand for city bus transit service in Mekelle city, Ethiopia. Results are based on primary data collected from 400 urban public transport service users. Heckman two steps employed as analytical techniques. In the Heckman two steps, Probit method helps to address the preference of commuters to city bus and OLS method addressed the willingness to pay the city bus tariff rate. Accordingly, more than 96% of respondents demand the city bus transport service. The recommendation arising from the study is that there is a need to introduce competitive base and end to end city bus transport service.

Keywords: city bus, demand, Heckman, Mekelle.

Full text

Demand for City Bus Transport Service in Mekelle, Ethiopia (Heckman Selection Model)