Trade dynamics of ferrous metals in emerging and developing countries

This study extensively examines the trade dynamics of ferrous metals in 44 emerging and developing countries from 2010 to 2021, utilizing the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model. The results indicate that a 1% increase in economic uncertainty is associated with a short-term reduction of approximately 0.17% and a long-term decrease of about 0.43% in ferrous metal trade within these nations. Despite facing challenges related to declining trade volumes, these countries have an opportunity to embrace more sustainable production and consumption practices. The research emphasizes a correlation between higher poverty ratios and reduced demand for ferrous metals, highlighting the pivotal role of poverty alleviation in sustaining industrial growth. Moreover, the expansion of ferrous metal trade driven by GDP growth is linked to environmental concerns like pollution and resource depletion, emphasizing the need for a transition toward eco-friendly economic development. Notably, a 1% improvement in the Good Governance Index is associated with a short-term decline of approximately 0.08% and a long-term decrease of around 0.11% in ferrous metal trade for emerging and developing nations. Based on these findings, the paper puts forth strategic policy recommendations to encourage environmentally friendly practices in ferrous metal consumption and trade. These suggestions encompass a focus on green projects, the promotion of private investment, the implementation of early warning economic systems, support for green startups, and facilitation of the importation of green components for sustainable projects.