Modeling the strategic impact of the railway corridor on Georgia's economy: A Multi-Layered Analysis using Navier-Stokes, Ricci Flow, and EVA Frameworks

Davit Gondauri

No 2025-14, Discourses in Social Market Economy from OrdnungsPolitisches Portal (OPO)

Abstract: Situated on the Eurasian transit axis, the Georgian railway corridor is a strategic artery for freight, capital, and innovation. This paper develops an integrated, model-driven assessment of its impact on economic development by combining: (1) Navier-Stokes equations adapted to economics to simulate operational flows and systemic risk; (2) a multidimensional Ricci Flow model to track inequality dynamics and structural transformation; and (3) an Economic Value Added (EVA) framework to evaluate long-term value creation and capital allocation. Using 2022-2024 data, we find that infrastructure modernization and efficiency gains increase liquidity velocity and lower systemic risk in the Navier-Stokes module. Stress tests reveal high sensitivity to external shocks, underscoring the need for dynamic operational and policy optimization. The Ricci Flow analysis maps how freight turnover, income growth, energy efficiency, and innovation shape inequality trajectories: parameters with positive curvature are associated with inclusive growth and sustainability, whereas negative curvature flags zones of persistent risk. EVA matrix modeling shows that higher growth and freight volumes lift GDP, added value, and competitiveness; importantly, a positive EVA margin emerges when annual growth reaches at least 3%. The study offers a transferable methodology for evaluating complex infrastructure under uncertainty and regional competition. Policy recommendations include institutionalizing real-time monitoring and stress testing, prioritizing inclusive-growth parameters, and aligning investment optimization with the integrated modeling stack to support sustainable, corridor-led development.

Keywords: Georgian Railway Corridor; Navier-Stokes Equations; Ricci Flow; Economic Value Added (EVA); Multilayer Analysis; Curvature Analysis; Stress Testing; Mathematical Economics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:opodis:333914

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