Authors
1 Faculty member and assistant professor at the Faculty of Administrative Sciences and Economics, University of Isfahan
2 Master of Economics, Management and Planning Organization of Isfahan Province
Abstract
The objective of the present paper is to explore the role of steel industry in the economy and to investigate its demand determinants. The paper has made attempts to find answers for questions still remaining in steel products market. Although the trend of domestic production has had an appropriate growth during the period 1967-99, excess demand for steel has been yet met by imports. The study specifies an import demand model for Iran's steel industry in a logarithmic form and uses the OLS method to estimate the model. The results indicate that import demand for steel is inelastic with respect to changes in relative prices, and elastic with respect to income. Finally, based upon the estimation results the model predicts steel demand for the third I.R. Iran's cultural, Social and Economic Development Plan, to be 10 Million tons for ending years.
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