Modeling the automotive industry with the approach of increasing and improving productivity in Iran's non-oil exports using a dynamic system

In today's world, the role of the economy in shaping business models and the power of nations is highly significant. Exports play a vital role in enhancing productivity and economic development, particularly in developing countries. The automotive industry, as a key sector, contributes considerably to this process. This study aims to identify the key influencing variables on non-oil exports and explore how they affect productivity growth and export improvement.

This research employs a system dynamics approach to model the interactions among key economic variables. The study utilizes VENSIM software to simulate the system dynamics model of the automotive industry and non-oil exports. Causal loop diagrams and stock and flow diagrams were developed to analyze the relationships.

The main variables analyzed in this study include exchange rate, inflation, productivity, and competitiveness. The developed model was validated and tested under various scenarios. Results indicate how changes in these variables impact productivity and the performance of non-oil exports in the automotive industry.

Originality/Value:

 This study offers a dynamic model tailored to the automotive sector in developing economies like Iran, where over-reliance on oil has led to inefficiencies in other export sectors. The model helps policymakers and industry stakeholders understand complex interactions and make informed decisions to boost non-oil exports and overall productivity.