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Effect Of Boat Transport Mode On Cost Of Goods In Lamu Island, Kenya

Tom Sani Oira, Moses Otieno

Abstract


Transportation, considered a leading indicator of economic performance, has become vital in modern society as it enables economic activity by connecting people, businesses and resources. The study seeks to analyze the effect of boat transport on cost of goods in Lamu Island, Kenya. Using descriptive survey, the primary data for this study was collected from 42 major businesses. A structured questionnaire with Likert-type scale questions was used. A pilot test was run on 6 businesses and reliability measured using Cronbach's alpha and found to be ?=0.90. Secondary data was obtained from books, journals, newspapers and websites. Data was subjected to computer aided statistical analysis that included descriptive statistics and correlation analyses. The results revealed that boat capacity, boat reliability and absence of transport alternatives are negatively correlated with cost of goods at p-value < 0.05 meaning that the researchers can be 95% confident that the relationship between variables is not due to chance. The study found that using boats alone to ferry cargo contributes 5-10% of the cost of goods yet the channel is narrow and about 5km only. Inadequate transport affects businesses and increases price of goods, burdening the consumer and affecting the overall competitiveness of the region. The study found that businesses buffered stock as a safeguard against delivery failure. Recognizing that regional economies are shaped by unique geostrategic conditions, the study recommends increasing transport alternatives to lower cost of transport thus reducing cost of goods. This will increase the economic productivity of the region and improve the welfare of the community.


Keywords


Boat transport; Price of goods; Capacity of transport; Reliability of transport; Transport alternatives.

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