The Impact of Steel Price on Ship Demolition Prices: Evidence from Heterogeneous Panel of Developing Countries

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Tunç M., Açık A.

SOSYOEKONOMI, vol.27, no.42, pp.227-240, 2019 (ESCI, TRDizin) identifier

  • Publication Type: Article / Article
  • Volume: 27 Issue: 42
  • Publication Date: 2019
  • Doi Number: 10.17233/sosyoekonomi.2019.04.12
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.227-240
  • Keywords: Steel Price, Demolition Price, Bootstrap Panel Causality, Developing Countries
  • Open Archive Collection: AVESIS Open Access Collection
  • Dokuz Eylül University Affiliated: Yes

Abstract

In this study, the causal relationship between global steel prices and demolition prices in five developing countries (Bangladesh, China, India, Pakistan, and Turkey) that host five main ship scrap centers in the world are examined. The bootstrap panel Granger causality analysis is employed to take heterogeneity and cross-sectional dependence into account. The data set used in this study consists of 289 weekly observations from January 8, 2013 to July 16, 2018. As a result of the study, a collective causality relationship from steel price to demolition prices is determined and individual causality relationships for all countries except Bangladesh are identified.