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Contribution of Iron and Steel Industry to Turkey’s Economy

Economists distinguish the world economies by two main groups according to the prosperity levels of the countries. On one side are advanced economies that provide high living standards, on the other side are underdeveloped or underdeveloped economies. When the structure of the national incomes of these two group countries is examined it is seen that while the economies of the developed and rich countries are mostly based on the industry sector, the agricultural sector in the poor countries constitutes the most important added value of the national income. The course of the economy in the past shows that the rich countries have begun to reform the industrialization before the others.

Rapid proliferation of the population and the unemployment it has caused, the inability of the increase of national income to go to the advanced countries and the unfavorable foreign trade conditions; infrastructure, raw material resources, human power, capital and, in countries where a market is partially or wholly present, the main factors that force the economy to industrialize.

Industrialization in general can be characterized by the linear growth of the rate of capital goods industry in total industrial production. According to W. Hoffmann, industrial economies are undergoing three typical phases during the course of development:

1. At the beginning of industrialization, the consumer goods industry dominates the whole industrial economy, and production of these goods is almost the basis of total industrial production.

2. In the second phase, the consumption goods industry is dominated by the industry, and the proportion of these goods in general industrial production is at most twice that of capital goods.

3. As industrialization eventually progresses, there is a balance between the production of both industries, and the acceleration of the actual industrialization begins with the capital goods industry outweighing the other.

In the first two of these three phases, weaving, clothing and food industry, and in the final stage iron and steel, metal goods and machinery industry production values ​​constitute the basis of total industrial production value.

In the modern industrial economy structure, which shows chain production technology, the production of a commodity requires the production of another commodity, either machine or semi-finished product before, and the increase in demand to the goods of the growing economy leads to the development of the capital goods industry which is necessary for the production of these goods , production of these goods directly affects iron and steel production.

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