Steel Industry and The Sector’s Impact On Economical Growth In Turkey

Turkey is largest steel producer in Europe with the exception of the Western European countries that are members of the European Union and it ranks as the eleventh in world steel production. The research task in the present study is to investigate the relationship between the data regarding steel (production, consumption, import and export) and the Gross Domestic Product (GDP), the Industrial Production (IP). In order to determine the aforementioned relation between the data regarding steel and the GDP, the Engle-Granger co-integration, Error Correction Model (ECM) and the Granger causality tests were applied. It has been found that the steel export and the production have direct relations with the GDP, whereas the steel export has a direct relation with the IP and both relations have causality effects.