Effect of Iron and Steel Industry on the Gross Domestic Production in the GCC States for the Period 2010-2020: Gobb Doglas Function

Abstract

This study examines the impact of the iron and steel industry on the Gross Domestic Production (GDP) of the Gulf Cooperation Council (GCC) states from 2010 to 2020, utilizing the Cobb-Douglas production function to quantify its contribution amidst economic diversification efforts. The review underscores the industry's significance and evolving role within the GCC economies, identifying a literature gap correlating the sector's growth with GDP impacts. Employing a quantitative approach, the research analyzes secondary data, including GDP, Iron and steel production volumes, labor inputs, and capital investments, using regression analysis in SPSS. Findings indicate weak correlations between the industry's output and GDP, with the regression model explaining less than 4% of GDP variance, suggesting minimal direct impact. The study challenges the perceived economic influence of the iron and steel industry on the GCC's GDP, highlighting the need for a broader examination of economic drivers beyond traditional sectors. Acknowledging limitations in data scope and economic indicators, the study calls for extended research incorporating diverse variables and longer-term analyses. Keywords: GCC, iron and steel industry, GDP, Cobb-Douglas production function, economic diversification.