Does forestry industry integration promote total factor productivity of forestry industry? Evidence from China

Abstract

The forestry industry in China is undergoing a transformation, with integrated development and improved productivity seen as crucial to achieving efficient and healthy growth. In this study, we used the Herfindahl index method, coupling Super-CCR model, Malmquist index method, and spatial Durbin model to measure and analyze the level of forestry industry integration, total factor productivity of the forestry industry, and effects of the former on the latter of each province in China from 2005 to 2019. Results showed that, first, the level of forestry industry integration increased, but there were differences in the Northeast-Central-West-East cascade. The integration level of the forestry industry in each province was mostly at the moderate or medium-high integration stage. Second, the total factor productivity of the forestry industry increased overall, with the Central, Eastern, Western, and Northeastern regions having regional annual average values from high to low, respectively. The main driving force for the advancement of technology was the sub-index. Third, forestry industry integration played a major role in promoting total factor productivity of the forestry industry by promoting pure technical efficiency. Forestry industry integration not only affected the improvement of total factor productivity of forestry industry in the region but also had a spatial spillover effect on adjacent areas. Efforts to boost integrated forestry industry development will enhance total factor productivity growth by leveraging high-productivity agglomeration effects, strengthening regional communication and cooperation, and promoting integrated forestry industry development with adjacent regions. This work may contribute to understanding this relationship and to creating effective regional forestry development policies.