The Effects of Transportation Economics on Convergence of Iran and Central Asian Countries

Abstract

Transportation has a significant influence on macro economy and takes part in GNP, investment, employment and exchange income. Transportation industry applies 10% of countries total GNP, 48.8% of export and 54.1% of import in global business. Previous studies have shown that the countries that have an associated and advanced transportation system could take maximum advantage of their geographical and economical privilege; because using an appropriate transportation system increases cargo, capital and labors mobility and reduces manufacturing, export and import expenses.

Central Asian countries, surrounded with land and with no access to free seas are forced to corporate with Black Sea’s coastal countries or Iran in order to reach free seas. Unfortunately due to weak economical convergence among central Asian countries and Iran’s inappropriate transportation system, a great part of international good and passenger business has been removed to Black Sea and Mediterranean region. Therefore, absence of economical interacts between these countries in regional economic activities and undefined transportation economy has resulted in ambiguity in further regional development.

Results from current study indicate that creating railway and highway networks between Iran and central Asian countries in order to develop regional cooperation, could reduce transportation expenses and increase trade changes balance and economical profits and relatively increase geographical convergence. According to reconnoitered massive reserves natural and mineral resources in this countries, through easing transportation of raw materials and work force specific economical-industrial areas can be made and development can be accelerated. Additionally, Iran can found special harbors in coastal areas of Oman Sea to link these networks to free seas. This will lead to increase the region’s economical competitive power in compare with other international regions and improve regional convergence and further improvement of Iran’s geopolitical and geo-economical situation.

Key words: transportation, economic geography, economical privilege, regional convergence