Effects Of Iron-Steel Sector On Global Competıtıon, Economıc Growth And Unemployment

Abstract

Nowadays industry which contributes to development of countries is one of the most crucial sectors, it seems to maintain its importance. The rapid advancements in technology play a crucial role in increasing product range and transporting of products. Thus, globalization gathers pace. Within this period, Iron and Steel sector which is a sub-sector of industry sector provides competitive power to countries and thus these countries get ahead of other countries.The aim of this study is to test the effects of steel production of global raw steel production in global raw steel production on global competitiveness index, economic growth and employment by panel data analysis. In this context, the data belonging to the years 2009-2016 will be tested by panel data analysis and the extent to which iron steel production affects these variables will be investigated. Second-generation panel unit root tests were used because of the cross-sectional dependence in the series. Then, according to the PMG estimator applied, there was a short and long-term relationship between total steel production and economic growth. The 1 unit increase in total steel production increases the economic growth in the long term by 0.104 and in the short term by 1.386 units. While 1-unit increase in total steel production decreased unemployment by 0.105 units in the long term; global competition increases by 0.22 units. In the short term there is no relationship.