Development of Product Space Theory for Systemic Analysis of Industries in Kermanshah Province

Subject Areas : Business Strategy

Shadi Ghiasi ¹ , heirsh soltanpanah ^{2 *} , Adel Fatemi ³ , Abdolnaser Shojaei ⁴

1 - Department of Management, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
2 - Department of Management, Islamic Azad University, Sanandaj, Iran
3 - Department of Statistics, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
4 - Department of Economic, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

Received: 2022-07-31 Accepted : 2022-11-15 Published : 2022-12-01

Keywords: product space, regional planning, revealed and latent comparative advantage,

Abstract :

Planning for economic sections and industrial activities at a regional level requires a proper understanding of a region’s potentials. The present study applies product space theory, network science, and information on Iranian provincial production structure to outline a roadmap for industrial development of Kermanshah. Analysis of mean value added and population of Iranian provinces in 2014 to 2018 indicated that of the 32 activities examined, Kermanshah has a revealed comparative advantage in five areas (agriculture and horticulture, traditional husbandry, apiculture, sericulture, and hunting) and other agricultural areas, forestry, and chemicals, with latent comparative advantage in 11 areas, and no advantage in 16 areas. Next, greedy, majority, high degree, and low degree strategies were combined with Borda’s and Copeland’s approaches to identify 11 activities for activation prioritized as follows: poultry, fishing, food, base metal, machinery & equipment, wood industry, other non-metal minerals, pharmaceuticals, metals, appliances, and rubber and plastic products.

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