Comprehensive Combined Index of Vulnerability and Resilience in Selected Countries (G7 and MENA); Graph Theory Approach

Aim and Introduction Internal and external economic crises and shocks are inevitable in different countries. Many countries are unable to resist economic crises and witnessed undesirable economic events. On the other hand, some countries are highly resilient to domestic and foreign economic crises. The single-product countries are more vulnerable to economic crises than other countries. Resilience of the economy can help move the economy towards sustainable development. Sustainable development is a development that meets the current human needs without harming the capabilities of the future generations to meet their needs. For sustainable development, four dimensions including governance, economic, environmental and social dimensions are considered. Analyzing the growth history of countries reveals the fact that international trade has been the engine of economic prosperity and expansion of most advanced and developing societies. In order to achieve sustainable development, it is necessary to have trade relations with other countries of the world. Also, the country's distance from international trade centers due to specific geographical and political conditions will be an obstacle to the development of the economy. In this way, the peripheral dimension is proposed as the fifth dimension of sustainable development to show the political and geographical isolation of the country. In this article, first, the dimensions of sustainable development and its subgroup variables are determined. Then the impact of sustainable development dimensions on the state of economic vulnerability and resilience of different countries are analyzed. The statistical sample includes two groups of countries including G7 member countries and MENA countries. This study investigates the state of vulnerability and resilience (VR) of these two groups during 2017-2020. Methodology In this article, Graph theory and Tarjan's algorithm are used to analyze the relationships within the network of variables influencing sustainable development and to ...