Development of Railway Silk Road as a Platform for Promoting Georgias Economic Growth

TL;DR

This paper explores how the Railway Silk Road can serve as a platform to enhance Georgia's economic growth by increasing cargo transport, analyzing its impact on GDP, and proposing models to understand this relationship.

Contribution

It introduces a cargo sensitivity model linking railway cargo volumes to Georgia's economic growth, providing new insights into transportation's role in national development.

Findings

Railway cargo volume growth correlates with GDP increase.

The Railway EVA model quantifies cargo's impact on economic growth.

Development of railway freight contributes significantly to Georgia's GDP.

Abstract

The given paper emphasizes the importance of the Railway Silk Road for promoting Georgia's economic growth and development. The article notes that economic integration in the region increases cargo turnover in Central Asia and the Caucasus, thus boosting the volume of goods transported through Georgia and contributing to the sustainability of Georgia's macroeconomic and economic growth. The financial economic models aim to identify causal links between the sensitivity of railway cargo and the country's economic growth. The main task of the research was to use the Railway EVA and the Georgian economy to create a cargo sensitivity relationship between CAGR models. The paper analyzes key scientific problems regarding railway freight transportation studies. Calculations are provided for the share of the Railway System in the country's GDP for 2006-2017, as well as the average annual geometric (CAGR) growth of cargo volumes over a 16-year cycle, allowing Georgian Railway JSC to generate additional value in the country's overall GDP. The research shows that the added value to GDP comes in direct and indirect forms through the development and growth of various sectors of Georgia's economy, as some of the cargo shipped by railway remains in Georgia and is used in production, thereby adding value to the country's economic growth. The use of this model by foreign research centers also provides further opportunities for the economic growth of their countries.