Growth Mechanisms and Sustainability: Economic Analysis of the Steel Industry in East Asia

Description

This book provides a broad investigation of various issues in East Asia’s steel industry since the 1980s, including international specialization and trade relations, the sustainable use of resources, technological innovations, and environmental mitigation, alongside a consideration of the rapid growth in Chinese steel industry. Using macro and firm-level data, and case studies based on field research to discuss issues concerning the steel industry in East Asia. In search of an easy understanding, we try to simplify complicated economic models and statistical analyses, and concentrate on policy implications based as much as possible on the results of empirical analyses. We believe that this book will be of interest to policymakers, economists, practitioners and advocates of sustainability. Preface Contents Notes on Contributors List of Figures List of Tables 1 Introduction 1 Issues Examined in This Book 2 This Book in Relation to the Literature on the East Asian Steel Industry 3 Structure of This Book References Part I The Process of Growth 2 How Does State Policy Shape East Asia’s Steel Industry? A Selective Review 1 Introduction 2 Key Policy Drivers of Productivity Growth 2.1 Drivers of Productivity Growth in Japan 2.2 Drivers of Productivity Growth in the Republic of Korea 2.3 Drivers of Productivity Growth in China 3 Energy-Saving Policies and Environmental Regulations 4 New Norms: Climate Change Policies and Sustainability 5 Excess Capacity in East Asia’s Iron and Steel Industry 6 Conclusion References 3 Changes in the Competitive Environment and Division of Labor Structure in Northeast Asia: A Focus on the Iron and Steel Industry 1 Introduction 2 Overview of the Iron and Steel Industry in Northeast Asia 3 The Intraregional Division of Labor Structure of the Iron and Steel Industry of KJC 3.1 International Trade Structure 3.2 The Intraregional Trade Structure in the ROK, Japan, and China 3.3 The International Competitiveness of the Iron and Steel Industry of KJC 4 Changes in the Trade Environment Surrounding the Iron and Steel Industry 4.1 Strengthening New Protectionism 4.2 Overcapacity and Steel Exports 5 Concluding Remarks and Future Agenda References 4 Changes in the Trade Structure of the Metal Products Industry in East Asia from the Perspective of the International Division of Labor 1 Introduction 2 Changes in the Trade Structure in the East Asia Region 3 Changes in the Trade Structure in Japan, China, and the ROK (by Sector) 4 Interdependence in the “Metal Products” Industry Among China, Japan, and the ROK 5 Conclusions References Part II The Mechanism of Growth 5 Natural Disaster Shocks and Raw Material Prices in the Steel Industry 1 Introduction 2 Global Iron Ore Industry and Price Volatility 3 Empirical Analysis 3.1 Estimation Framework 3.2 Data Description 4 Results 4.1 Main Results 4.2 Cumulative Effect of Natural Disasters 4.3 Effect of Natural Disasters by Type 5 Conclusions References 6 Technology Transfer Management in the Steel Industry: Transfer Speed, Recognition Lag and Learning Lag 1 Introduction 2 Technology Transfer in Capital-Intensive Industries 3 Crude Steel Production and Quality Competition in the Steel Industry 4 Struggling to Produce High-Grade Steel in South Korea 5 Technology Recognition and Equipment Dependence 5.1 Why is Interprocess Coordination Important in the Steel Industry? 5.2 Tolerance Management as an Example of Interprocess Coordination 5.3 Technical Learning and Recognition Misalignment 6 Implications: The Differences in Catch-Up Speeds Within the Steel Industry References 7 Decomposing the Energy Impact of the Steel Industry in the Manufacturing Sector: Evidence from Japan and China 1 Introduction 2 Japan’s Efforts to Reduce CO2 Emissions 3 China’s Efforts to Reduce CO2 Emissions 4 Literature Reviews of the Method 5 Decomposition of CO2 from Manufacturing 5.1 Method 5.1.1 Scale, Composition and Technique Effects 5.1.2 Direct Estimate of the Technique Effect 5.2 Data of Japan 5.3 Data of China 6 Results 6.1 Results for Japan 6.2 Results for China 7 Discussion 8 Conclusion References 8 The Impact of Imports, Technological Progress and Domestic Demand on the Growth of and Structural Changes in China’s Steel Industry 1 Introduction 2 Literature Review 3 Theoretical Analysis 4 Empirical Analysis 4.1 The Focus and Data Resources 4.2 Analysis of the Impact of the Import Prices from Japan and the ROK 4.3 Analysis of the Impact of the Import Quantity from Japan and the ROK 4.4 Analysis of the Effects of the Production of Chinese Steel Products 4.5 Analysis of the Influence of the Production and Import of Steel Products on Final Goods Production in China 5 Conclusion Appendix References Part III The Impact of the Growth of China's Steel Industry 9 Effectiveness and Policy Analysis of International Capacity Cooperation of China’s Steel Industry 1 Current Situation of China’s Steel Industry 2 Analysis of Causes of Overcapacity in China’s Steel Industry 3 De-Capacity Policies of China’s Steel Industry and Their Effect 3.1 Major De-Capacity Measures in the Steel Industry 3.2 Main Successes in De-Capacity in the Steel Industry 4 Analysis of the Effect of International Capacity Cooperation on China’s Steel Industry 4.1 Current Situation of International Capacity Cooperation 4.2 Achievements of China’s Production Capacity Cooperation 5 Concluding Remarks References 10 Labor Productivity and Surplus Labor in Chinese Iron and Steel Firms 1 Introduction 2 Methodology 2.1 Model 3 Data 4 Employment, Wages and Labor Productivity in Chinese Iron and Steel Firms 5 Econometric Analysis: Results 5.1 Basic Results of the Chinese Iron and Steel Firm Production Function 6 Results of the Chinese Iron and Iron and Steel Firm Production Function by Ownership Type 7 MPL and Wage of Chinese Iron and Steel Firms 8 Conclusion References 11 On the Electoral Consequences of Increasing Chinese Imports: Insights from the Japanese Lower House General Elections, 2009–2017 1 Introduction 2 Research Design 2.1 Dependent Variables 2.2 Chinese Import Exposure 2.3 Instrumental Variable 2.4 Other Variables and the Coding of the Product Categories 2.5 Model Specification 3 Results 3.1 Electoral Consequences of the Increasing Chinese Imports in Japan 3.2 Notes on the Remaining Methodological Concerns 4 Conclusion References Part IV Closing Remarks 12 Closing Remarks: Toward Sustainable Growth of the Steel Industry in East Asia References Index