Scenarios for Developing Product Localization by Business Entities
DOI:
https://doi.org/10.51699/cajitmf.v7i2.1210Keywords:
Small business, import geography, import dependence, import substitution, sustainable development, modernization, diversificationAbstract
This study examines the role of product localization and import substitution as key strategies for enhancing the competitiveness and sustainability of business entities in the modern global economy. The research aims to analyze the impact of localization processes on industrial production and to develop alternative scenarios for future development. The methodology is based on a multifactor econometric approach, including correlation and regression analysis, using statistical data for the period 2012–2025. The study evaluates the influence of key factors such as investment volume, number of localization projects, number of enterprises in special economic zones, export volume, and labor productivity on the volume of localized industrial production. The results reveal a strong correlation between the selected factors and production outcomes, indicating that localization significantly contributes to industrial growth. The developed econometric model demonstrates high reliability and can be effectively used for forecasting. Based on the model, three development scenarios—pessimistic, baseline, and optimistic—are proposed for the period 2026–2030. The findings confirm that the effective implementation of localization strategies, combined with innovation and export-oriented policies, can substantially increase production efficiency and reduce import dependence. The study concludes that localization serves as an important driver of economic development and provides a practical framework for strategic planning in industrial sectors.
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