Determinant of Thailand's Finished Steel Production
DOI:
https://doi.org/10.55164/ecbajournal.v17i1.268520Keywords:
Iron and Steel Industry, Finished Steel Production, Capacity Utilization Rate, Industry Labor ProductivityAbstract
This research aims to study the determinant of Thailand's finished steel production. The factor of this study were collected by using the iron and steel industry of Thailand. The research were quarterly time series data from Q1-2014 to Q4-2 0 2 2, a total of 36 quarters. The data were also analyzed by percentage, mean, minimum, maximum, median, standard deviation, Pearson’s product moment coefficient of correlation, and enter multiple regression analysis. The results showed that labor productivity index, gross fixed capital formation, finished steel consumption quantity, finished steel export price average, the exchange rate, and finished goods inventory index factors had positive relationship with Thailand's finished steel production quantity at the significance level of 0.05. The finished steel import quantity, capacity utilization rate, and finished steel import price average factors had negative relationship with Thailand's finished steel production quantity at the significance level of 0.05. Every factor could explain the overall relationship at 89.30% with a relative coefficient (R) at the level of 0.945 and finished steel export quantity factor had no significance with Thailand's finished steel production quantity. The result can be used as guideline for promoting the steel consumption from production of the domestic steel industry and steel import reduction from the international steel industry and then, for developing efficient with the Thai steel industry and can compete the world steel industry sustainably. This research will also be beneficial for the steel industrial enterprise to apply as a guideline of Thailand's finished steel production forecasting and opportunity or limitation of manufacturing technology development in order to benefit both domestic steel consumption and foreign steel consumption.
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