بررسي تقاضاي داخلي محصولات فولادتخت در ايران

A Survey on Domestic Demand for Flat steel Products In Iran

The major objective of the present paper is to specify and estimate an econometric model, exploring relationship between domestic demand for flat steel products and its main explanatory variables. It focuses particularly upon the behavior of domestic function for this type of steel products, as an intermediate good affected by relative prices and income changes, through the estimation of a log-linear econometric model over the period of 1951-1998. Estimation results obtained by the econometric methods are reliable and applicable. They indicate that there is a negative relationship between domestic demand for flat steel products and relative prices, but a positive relatoinship between demand and activity income variable. But the results reveal that demand for flat steel products is quite inelastic with respect to the relative prices while being elastic to the income changes over the period under consideration. Finally, according to a singificant positive coefficient for the relative price of aluminum, this commodity is introduced as an appropriate substitution for the flat steel products. Overall, the implication of the study may lead poicy makers to consider a crucial role for steel products in the process of economic development.