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Competing with Low-Cost Imports: Strategic Outsourcing and Firm Dynamics in Traditional Manufacturing – An Agent-Based Approach | ||
| Iranian Journal of Economic Studies | ||
| مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 25 اردیبهشت 1404 | ||
| نوع مقاله: Research Paper | ||
| شناسه دیجیتال (DOI): 10.22099/ijes.2025.52733.2019 | ||
| نویسندگان | ||
| Zahra Asadollahi Sohi* ؛ Hossein Raghfar | ||
| Faculty of Social Sciences and Economics, Al-Zahra University, Tehran, Iran. | ||
| چکیده | ||
| This study investigates how traditional, supplier-dominated manufacturing industries (e.g., clothing, furniture) navigate globalization and competition from low-cost offshore suppliers. We develop a hybrid computational model integrating agent-based and system dynamics approaches to simulate interactions among heterogeneous agents—domestic producers, importers, and offshore suppliers—under evolving market conditions, including consumption patterns, tariff policies, and entry rules. The model captures how firms employ adaptive strategies such as outsourcing production while retaining value-added activities (e.g., design, branding) to compete with cost-efficient rivals. Results reveal that industry resilience depends on proactive enterprises capable of non-technological innovation, differentiating products through aesthetic and strategic competencies rather than technological breakthroughs. Market volatility emerges from incomplete information among new entrants, whose profit-driven entry/exit decisions amplify cyclical fluctuations in producer numbers. While tariffs temporarily shield domestic firms, they fail to address structural disadvantages without complementary investments in adaptive capabilities. Globalization exhibits a dual role: low-cost imports threaten market share, yet strategic outsourcing enables resilient firms to integrate into global value chains, transforming competitive pressures into opportunities. Methodologically, this work advances industrial economics by demonstrating how hybrid computational modeling captures complex, dynamic interactions often oversimplified in equilibrium-based analyses. Policymakers are urged to prioritize fostering adaptive ecosystems—emphasizing skill development, branding, and design—over protectionist measures to sustain competitiveness in traditional sectors. The findings underscore the criticality of balancing market openness with strategic support for value-creating competencies in an increasingly globalized economy. | ||
| کلیدواژهها | ||
| agent-based computational model؛ industrial clusters؛ traditional manufacturing sectors؛ globalization؛ government support | ||
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آمار تعداد مشاهده مقاله: 9 |
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