Modeling of causes of Preference of Smuggled Commodities over Domestic Commodities, an Interpretive-Structural Modeling approach

Article Type:
Research/Original Article (بدون رتبه معتبر)
During recent years, so much effort has put on defying commodity smuggling in the Islamic Republic of Iran, but a few results come about. In this research, the main question is that: “what are the main elements that cause buyers to prefer smuggled goods over domestically produced goods in Iran?”After reviewing the related literature, we analyzed contents of gathered data through Exploratory Content Analysis, and identified ten major underlying factors. The second question of this research is: “Why can smuggled goods put so much pressure on domestic production, despite the well-established, subsidized, and promoted manufacturing industries? How are the causal factors related to each other?” So, we used Interpretive Structural Modeling (ISM) to answer the second question. The final ISM model included in 4 layers.As the results show, two factors that have ‘higher costs of domestic production’ and ‘high inflation rate’ are the root causes of domestic products weakness against smuggled commodities. Also, MICMAC analysis shows that the half (five out of ten) of variables are categorized as Driver/Power variables
Scientific Journal of Progress Study: Systems and Strategies, Volume:2 Issue: 1, 2021
27 to 52  
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