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

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.