What is it about?

The article that served as the source and inspiration for the information presented on this page was originally published under the title. “Grubel-Lloyd endeksi ile demir çelik sektöründe endüstri içi ticaret: KEİ ülkeleri üzerine bir analiz” in “İstanbul Üniversitesi Dış Ticaret Dergisi”, dated 2023, Volume 1(4), pp. 75-89. The content below offers informative and explanatory insights that include personal perspectives on the topic. You are welcome to share your questions, comments and suggestions via the contact channels and academic/social platforms listed in the menus on the right. The author(s) expect proper citation of their original work as a recognition of their scholarly contribution published in peer-reviewed scientific journals. Therefore, please refrain from citing this page and instead cite the original article. Please note that this text serves primarily as an introduction and expression of viewpoints. Thank you for your understanding. Steel: it’s the backbone of modern industry and a tricky double act. This study dives into the paradox of the iron and steel sector: it imports to produce, yet must export to survive. While both developed and developing nations race to build and boost their steel industries, success hinges on smart capacity use, tech-driven efficiency, and the power to compete globally. Zooming in on Türkiye and its BSEC partners from 2018 to 2022, the research uses the Grubel-Lloyd Index to uncover a surprising truth: despite the ambitions, intra-industry trade intensity in the region is still falling short of expectations. Time to sharpen those edges.

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Why is it important?

Behind the numbers lies a regional story worth telling. From 2018 to 2022, Türkiye’s intra-industry trade in the iron and steel sector with its Black Sea Economic Cooperation (BSEC) partners revealed more gaps than gains. Countries like Greece, Russia, and Moldova showed nearly no trade symmetry, while only a few, like Georgia, Azerbaijan, and North Macedonia, flirted with high integration levels, crossing the magic 0.50 threshold on the Grubel-Lloyd Index. Romania and Serbia, on the other hand, offered mixed signals, swinging between cooperation and disconnect. But this isn’t just about numbers, it's about potential. With six BSEC countries ranking in the world’s top 50 steel producers, the region holds serious industrial weight. Yet the low intra-industry trade intensity hints at underused economic ties, weak logistical coordination, and missed opportunities. The takeaway? It’s time for BSEC members to double down on iron and steel diplomacy: refresh trade agreements, boost infrastructure, and align policies for a greener, more cooperative future. The steel is hot: strike now!

Perspectives

In my view, from the earliest stages of human history to the present day, the debate over whether humanity has succeeded in balancing quantity and quality in the allocation of resources has persisted. The rapid rise in population, the development of technology, and the increasing complexity of labor division have enabled the establishment of larger-scale enterprises, ultimately giving rise to a form of competition where one must choose between quantity and quality, later evolving into a more complex question: both, but how? The devastation brought by the First World War and the 1929 Economic Crisis prompted nations, like individuals, to seek new avenues for stability and prosperity. As a response to the lessons learned, enhancing welfare levels, ensuring equitable regional influence, and promoting economic growth became priorities, paving the way for economic integration movements as an answer to the question of "both, but how?" The establishment of the European Coal and Steel Community, based on the belief that it would address inter-state economic problems and contribute to national development through key sectors like coal and steel, exemplifies this process. In the context of the Black Sea, economic integration movements have gained significance due to the region’s strategic and economic attributes. Globalization, the liberalization of the movement of goods, services, and capital, coupled with technological advancements and increased competition, have encouraged countries to form partnerships and join economic unions to remain competitive in global markets. The collapse of the Soviet Union reshaped the geopolitical and economic landscape of the Black Sea, reinforcing its strategic relevance as both a transit hub between north and south and a bridge between east and west. As such, the Black Sea Economic Cooperation Organization (BSEC) stands out as a regional economic integration initiative dedicated to the Black Sea and its surrounding territories. PLEASE NOTE THAT THE CONTENTS ON THIS PAGE ARE NOT IDENTICAL TO THOSE PRESENTED IN THE ORIGINAL STUDY. FOR INFORMATION, COMMENTS, OR SUGGESTIONS, PLEASE CONTACT THE AUTHOR.

Ümit Remzi Ergün
Canakkale Onsekiz Mart Universitesi

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This page is a summary of: GRUBEL-LLOYD ENDEKSİ İLE DEMİR ÇELİK SEKTÖRÜNDE ENDÜSTRİ İÇİ DIŞ TİCARET: KEİ ÜLKELERİ ÜZERİNE BİR ANALİZ, İstanbul Ticaret Üniversitesi Dış Ticaret Dergisi, December 2023, İstanbul Ticaret Üniversitesi Dış Ticaret Enstitüsü,
DOI: 10.62101/iticudisticaretdergisi.1340602.
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