The Economics of the World Iron and Steel Industry: 1950-1980
36 Pages Posted: 3 Jan 2006
Date Written: January 2006
This paper presents an analysis of the world iron and steel industry from 1950 to 1980. After presenting a technical overview describing the technological possesses in use during that period by the steel, the iron ore and the ferrous scrap industries, we describe and analyse, on economic grounds, the market structure and the market forces that shaped the iron and steel industry from the beginning of the 1950s to the end of the 1970s. After analysing the market structure of the iron ore and the steel industry, we argue that bilateral monopoly is an adequate framework to deal with the iron and steel market during that period, and that the steel industry has stronger market power to influence iron ore prices to its advantage.
Keywords: iron and steel industry, iron ore, market structure, bilateral monopoly, terms of trade
JEL Classification: D40, D42, D43, L10, L11, L12, L13, L23, L61, L72
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