The Issue of Supporting Domestic Production: Challenges and Strategies

Domestic manufacturers face a number of challenges that have stopped manufacturing, and shut down some of the industrial units. Over the past years, governments have tried to support domestic production through monetary supportive policies and tariffs, but they still face a lot of challenges, despite the fact that they spend a lot of resources and costs on businesses. This paper is to analyze manufacturers' and experts' perception of domestic production, protection challenges, and effective strategies for supporting domestic production. This paper has been conducted with a qualitative approach and using theoretical and analytical knowledge of university professors and practical knowledge of employers, which are the sample population of this research. Results indicate that current policies to support domestic production have created numerous challenges, including the challenge of creating and sustaining employment, the challenge of technology and innovation, and the challenge of economic corruption and rents. Other findings from this study include the need to change the strategies for supporting domestic production. Current strategies, such as providing cheap banking facilities, imposing high tariffs on imported goods, and subsidizing cheap, inefficient energy instead, the government can use efficient strategies such as macroeconomic stability, support for R & D, regional and international marketing, control of corruption and improve the business environment.