Empirical Study on the Factors Affecting Steel Production in Beijing-Tianjin-Hebei Area

Abstract

The Beijing-Tianjin-Hebei region is currently the most concentrated area of China's steel industry. In 2016, steel production accounted for about one-third of the national output. While the steel production in the Beijing-Tianjin-Hebei region has made a great contribution to the local economy, it has also made up for the shortage of steel production in other regions. This paper uses two models to explore the impact of steel comprehensive price index, steel R&D expenditure, construction area of the whole society and annual automobile output as explanatory variables on steel production in Beijing-Tianjin-Hebei region. Through empirical analysis, it is concluded that the increase in steel R&D expenditure will lead to an increase in steel production. The increase in the comprehensive price index of steel will lead to a decrease in production. The increase in the construction area of the whole society will lead to an increase in steel production. The increase in annual production of automobiles will also lead to steel production increase.