A recursive networking economic analysis of international economic corridors: IMEEC and INSTC

Abstract

The expansion of the International North-South Transport Corridor (INSTC) and the introduction of the India-Middle East-Europe Economic Corridor (IMEEC) are of great significance in terms of both politics and trade. This article aims to analyze the methodological shortcomings of traditional models and suggests a new model to evaluate the potential trade benefits of these corridors. The study discusses the reasoning for combining recursive analysis with GIS-network analysis in the logistical planning of international corridors. The authors have used a shopping time model that integrates distance and political risk index (PRI). They have then employed dynamic programming to assess and compare the changing opportunity cost (OPC) of retaining money. The findings suggest that the development of these corridors would provide differing degrees of benefits to different nations, with India being the country that would earn the greatest advantage by joining the IMEEC. Nevertheless, Iran enjoys the most significant benefits in comparison to other members of the INSTC. India stands to benefit somewhat more from its participation in the INSTC compared to the IMEEC.

Keywords

• Recursive
• networking
• shopping time
• economic corridors
• INSTC
• IMEEC