It can contribute significantly to economic efficiency, both directly - by reducing transport costs - and indirectly, by lowering inventories. For instance, construction of new roads in China has led to increased productivity of firms, with an annual rate of return of 11 % and a dramatic reduction in inventories, saving on firms’ inventory holding costs.212 By cutting down the time and resources it takes to move goods, inputs and people, better transport systems improve SME competitiveness, help create jobs, and boost incomes. Rising wealth and urbanization in these regions are projected to increase investment in roads to accommodate more cars and public transport.