Country Risk and Wooden Furniture Export Trade: Evidence from China

Abstract

Abstract Wooden furniture is the main product of the forest products trade, and activities associated with its international trade currently face many risks, representing a degree of uncertainty in the wooden furniture export trade. To explore the impact of country risk on China's wooden furniture export trade, panel data from 1995 to 2020 are used as a basis for this study, in which the impact of the country risk of trading partners on China's wooden furniture export trade is empirically analyzed using a stochastic frontier gravity model. The research shows that the economic scale and population scale of the trading partners and China, forest resource endowment, and exchange rate fluctuation all have a significant impact on the export trade of Chinese wooden furniture. The economic and financial risks of trading partners have a notable negative influence on China's wooden furniture export trade, but political risk has a positive effect. The export efficiency of China's wooden furniture is at a moderate level, and there is a huge imbalance between different trading partners.