The Iron and Steel Sector and Economic Growth: Evidence from Turkey

  • Umut Gündüz
Conference paper


The purpose of this study is to examine the relationship between the value added generated by the iron and steel sector (ISS) and economic growth. The unit root test, a vector auto regression model, a vector error correction model and the Granger causality test are used to analyze this relationship, as well as its responsiveness to shocks. Significant forward and weak backward linkages are found for the ISS. Unidirectional long-term causality and bidirectional short-term causality are observed. Estimated parameters are consistent with theoretical expectations.


Total Factor Productivity Granger Causality Stochastic Frontier Granger Causality Test Vector Error Correction Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Alexander DL, Neill JR (2003) Technical progress and real wage stagnation: Theory and evidence from the U.S. steel industry. Economics of Innovation and New Technology 13(1):61–75CrossRefGoogle Scholar
  2. Altinay G, Karagol E (2004) Structural Break, Unit Root, and the Causality between Energy Consumption and GDP in Turkey. Energy Economics:26:985–994CrossRefGoogle Scholar
  3. Altinay G, Karagol E (2005) Electricity Consumption and Economic Growth: Evidence from Turkey. Energy Economics 27: 849–856CrossRefGoogle Scholar
  4. Asteriou D (2006) Applied Econometrics: A Modern Approach using EViews and Microfit, Palgrave Macmillan, New YorkGoogle Scholar
  5. Balkır C and Ilgaz A (1989) AT Entegrasyonunda Demir Çelik Sanayi. Presented at Sanayi Kongresi, Accessed 28 March 2011
  6. Beeson P, Shore-Sheppard L, Shaw K (2001) Industrial change and wage inequality: Evidence from the steel industry. Industrial and Labor Relations Review 54:466–483CrossRefGoogle Scholar
  7. Ghosh S (2006) Steel consumption and economic growth: Evidence from India, Resources Policy 31:7–11CrossRefGoogle Scholar
  8. Glasure YU,Lee AR (1997) Cointegration, Error-Correction, and the Relationship between GDP and Energy: The Case of South Korea and Singapore. Resource and Energy Economics 20: 17–25CrossRefGoogle Scholar
  9. Kim JW, Lee JY, Kim JY, Lee HK (2006) Sources of productive efficiency: International comparison of iron and steel firms. Resources Policy 31:239–246CrossRefGoogle Scholar
  10. Lütkepohl H (1991) Introduction to Multiple Time Series Analysis, Springer, New YorkzbMATHGoogle Scholar
  11. Lütkepohl H, Kratzig M (2004) Applied Time Series Econometrics. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  12. Movshuk O (2004) Restructuring, productivity and technical efficiency in China’s iron and steel industry, 1988–2000. Journal of Asian Economics 15:135–151CrossRefGoogle Scholar
  13. Northrup HR (1991) The twelve-hour shift in the North American mini-steel industry. Journal of Labor Research 12(3):261–278CrossRefGoogle Scholar
  14. Parrish J B (1956) Iron and steel in the balance of world power. The Journal of Political Economy, 64(5):369–388CrossRefGoogle Scholar
  15. Schumacher K, Sathaye J (1998) India’s iron and steel industry: Productivity, energy efficiency and carbon emissions. Technical Report, Ernest Orlando Lawrence Berkeley National Laboratory.Google Scholar
  16. Soytas U, Sari R (2003) Energy Consumption and GDP: Causality Relationship in G-7 Countries and Emerging Markets. Energy Economics 25: 33–37CrossRefGoogle Scholar
  17. Wu Y (1996)Technical efficiency and firm attributes in the Chinese iron and steel industry. International Review of Applied Economics 10(2):235–248.CrossRefGoogle Scholar
  18. Zhang XG, Zhang S (2001) Technical efficiency in China’s iron and steel industry: Evidence from the new census data. International Review of Applied Economics 15(2):199–211CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Faculty of ManagementIstanbul Technical UniversityBeşiktaşTurkey

Personalised recommendations