Estimated Demand in Commercial Goods Road Transportation Tehran Province

Today, about 10 percent of an economy is allocated to the transportation. As freight transport has an important role in the development and growth of various economic sectors, investment in transportation can improve the other sectors. Among different methods of transport, road transport is of great importance because of the door – to – door provision (from production site to consumption place). About 25 percent of GNP is allocated to Tehran province with 1 percent of the area and 18 percent of the population of the country. Therefore, the demand for commercial goods was studied in the Tehran province’s road transport. The data was analysed by the EViews software through OLS method. The results show that the amount of freight transport from Tehran to the other provinces is a function of production volume in Tehran and it will increase by incrementing of the destination population and will decrease by increasing the distance.The freight transport demand for Tehran province is dependent to the external exchanges and public budget. Based on the finding of this study, in the short term, development of road transport infrastructures focusing on Tehran can facilitate the growth of various sectors of the country’s economy.