A system dynamics model to analyse economic challenges of apparel industry: the case study of Iran
by Zahra Asadollahi Sohi; G. Hamed Shakouri; Hossein Raghfar
International Journal of Intelligent Engineering Informatics (IJIEI), Vol. 8, No. 5/6, 2020

Abstract: The apparel industry is considered a growth engine for developing countries. However, there are failure cases too. For example, Iranian producers face losing their domestic market share. To evaluate the reasons, system dynamics applied to model this industry from an economic perspective. The model is the first quantitative system dynamics model for this industry, which investigates the effect of economic variables on apparel production and import. The model can settle controversial issues between policymakers and manufacturers toward the effect of many variables such as tariff barriers, exchange rate, structural changes, wage, and inflation rates. The results show, linking up with global leaders is an effective strategy to ameliorate domestic production. However, this strategy cannot compensate for the negative effects of high inflation rates. Besides, the tariff rate and exchange rate cannot be considered as long-time industry improvement strategies since they do not remove the deteriorating effects of economic instability and high inflation rates.

Online publication date: Fri, 18-Jun-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Intelligent Engineering Informatics (IJIEI):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com