Downstream beneficiation: A cross-country analysis of factors underlying the emergence of a steel industry

Abstract This paper empirically investigates the major factors that have supported the development of steel industries across countries. While technological capacity has become an important enabling factor for steel production in recent years, the demand for steel and the availability of energy (electricity and metallurgical coal imports) have remained key elements over time. In emerging and developing economies, the availability of raw materials, namely the production of iron ore, was also identified as an additional determining factor for steel production. In advanced economies, domestic demand for steel has been an important factor driving steel production. The results are robust to alternative specifications, additional control variables, and the use of various processes for steel production.