IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i16p12297-d1215695.html
   My bibliography  Save this article

The Implication of Steel-Intensity-of-Use on Economic Development

Author

Listed:
  • Harimukti Wandebori

    (Sekolah Bisnis dan Manajemen, Institut Teknologi Bandung, Jl. Ganesha No. 10, Bandung 40132, Indonesia)

  • Murtyastanto

    (Krakatau Steel, Jl. Industri No. 5, Cilegon 42435, Indonesia)

Abstract

This paper identifies statistical relationships between the Steel-Intensity-of-Use and the Gross Domestic Product per Capita based on the data of ten selected countries based on judgmental sampling from the World Steel Association. Economic data such as Gross Domestic Product, Gross National Income, Gross Domestic Product per Capita, government spending, investment, Export of Goods and Services, and manufacturing are obtained. Based on regression analysis and exploration of economic data, the relationship differs in terms of economic development stratification. We find a pattern of a waveform in terms of Correlation and Significance between Steel-Intensity-of-Use and the Gross Domestic Product per Capita along the country’s economic classification. Each classification implies that the country needs to enhance the economy related to the required steel or non-steel-related industry and the accompanying government policy.

Suggested Citation

  • Harimukti Wandebori & Murtyastanto, 2023. "The Implication of Steel-Intensity-of-Use on Economic Development," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12297-:d:1215695
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/16/12297/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/16/12297/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dan Su & Yang Yao, 2017. "Manufacturing as the key engine of economic growth for middle-income economies," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(1), pages 47-70, January.
    2. Antonio Focacci, 2007. "Empirical analysis of the relationship between total consumption‐GDP ratio and per capita income for different metals," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(9), pages 612-636, August.
    3. Antonio Focacci, 2007. "Empirical analysis of the relationship between total consumption‐GDP ratio and per capita income for different metals," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(9), pages 612-636, August.
    4. Worrell, Ernst & Laitner, John A & Ruth, Michael & Finman, Hodayah, 2003. "Productivity benefits of industrial energy efficiency measures," Energy, Elsevier, vol. 28(11), pages 1081-1098.
    5. Ignacio Guzman, Juan & Nishiyama, Takashi & Tilton, John E., 2005. "Trends in the intensity of copper use in Japan since 1960," Resources Policy, Elsevier, vol. 30(1), pages 21-27, March.
    6. Jaunky, Vishal Chandr, 2012. "Is there a material Kuznets curve for aluminium? evidence from rich countries," Resources Policy, Elsevier, vol. 37(3), pages 296-307.
    7. Roberts, Mark C., 1996. "Metal use and the world economy," Resources Policy, Elsevier, vol. 22(3), pages 183-196, September.
    8. Howitt, Peter & Aghion, Philippe, 1998. "Capital Accumulation and Innovation as Complementary Factors in Long-Run Growth," Journal of Economic Growth, Springer, vol. 3(2), pages 111-130, June.
    9. Mansfield, Edwin, 1988. "Industrial R&D in Japan and the United States: A Comparative Study," American Economic Review, American Economic Association, vol. 78(2), pages 223-228, May.
    10. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    11. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute of Labor Economics (IZA).
    12. Fernandez, Viviana, 2018. "Mineral commodity consumption and intensity of use re-assessed," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 1-18.
    13. Dazhong Cheng, 2013. "The development of the service industry in the modern economy: mechanisms and implications for China," China Finance and Economic Review, Springer, vol. 1(1), pages 1-12, December.
    14. Canas, Angela & Ferrao, Paulo & Conceicao, Pedro, 2003. "A new environmental Kuznets curve? Relationship between direct material input and income per capita: evidence from industrialised countries," Ecological Economics, Elsevier, vol. 46(2), pages 217-229, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wårell, Linda, 2014. "Trends and developments in long-term steel demand – The intensity-of-use hypothesis revisited," Resources Policy, Elsevier, vol. 39(C), pages 134-143.
    2. Phillip Crowson, 2018. "Intensity of use reexamined," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 61-70, May.
    3. Crompton, Paul, 2015. "Explaining variation in steel consumption in the OECD," Resources Policy, Elsevier, vol. 45(C), pages 239-246.
    4. John Baffes & Alain Kabundi & Peter Nagle, 2022. "The role of income and substitution in commodity demand [Modelling OECD industrial energy demand: asymmetric price responses and energy-saving technical change]," Oxford Economic Papers, Oxford University Press, vol. 74(2), pages 498-522.
    5. Fernandez, Viviana, 2018. "Mineral commodity consumption and intensity of use re-assessed," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 1-18.
    6. Jaunky, Vishal Chandr, 2012. "Is there a material Kuznets curve for aluminium? evidence from rich countries," Resources Policy, Elsevier, vol. 37(3), pages 296-307.
    7. Pothen, Frank & Welsch, Heinz, 2019. "Economic development and material use. Evidence from international panel data," World Development, Elsevier, vol. 115(C), pages 107-119.
    8. Dirk Czarnitzki & Julie Delanote, 2017. "Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(1-2), pages 78-92, February.
    9. Rami Rawashdeh, 2023. "Estimating short-run (SR) and long-run (LR) demand elasticities of phosphate," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 239-253, June.
    10. Kassouri, Yacouba & Alola, Andrew Adewale & Savaş, Savaş, 2021. "The dynamics of material consumption in phases of the economic cycle for selected emerging countries," Resources Policy, Elsevier, vol. 70(C).
    11. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    12. Dorothée Charlier & Florian Fizaine, 2020. "Does Becoming Richer Lead to a Reduction in Natural Resource Consumption? An Empirical Refutation of the Kuznets Material Curve," Working Papers 2020.05, FAERE - French Association of Environmental and Resource Economists.
    13. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    14. Getu Hailu, 2023. "Reflections on technological progress in the agri‐food industry: Past, present, and future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 119-141, March.
    15. João Leitão & Joaquim Ferreira, 2021. "Dynamic Effects of Material Production and Environmental Sustainability on Economic Vitality Indicators: A Panel VAR Approach," JRFM, MDPI, vol. 14(2), pages 1-20, February.
    16. José García-Quevedo & Gabriele Pellegrino & Marco Vivarelli, 2011. "The determinants of YICs’ R&D activity," Working Papers 2011/31, Institut d'Economia de Barcelona (IEB).
    17. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute of Labor Economics (IZA).
    18. Dhar, Subash & Shukla, Priyadarshi R., 2015. "Low carbon scenarios for transport in India: Co-benefits analysis," Energy Policy, Elsevier, vol. 81(C), pages 186-198.
    19. Leitão, João & Ferreira, Joaquim & Santibanez-González, Ernesto, 2022. "New insights into decoupling economic growth, technological progress and carbon dioxide emissions: Evidence from 40 countries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. García-Quevedo, José & Pellegrino, Gabriele & Vivarelli, Marco, 2011. "R&D Drivers in Young Innovative Companies," IZA Discussion Papers 6136, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12297-:d:1215695. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.