Abstract
Abstract This project summarizes the financing and recent growth of Uruguay's forestry sector, with emphasis on the relevant businesses, associations, and investments in the context of Uruguay's Forestry Law, which encouraged large-scale forestry plantations in the 1990s through the use of subsidies, tax relief, and targeted loans. A survey of Uruguay's largest forestry entities and investors consistently singled out financing and access to capital as major challenges for Uruguayan firms relative to their competitors in larger countries with more developed capital markets. These issues associated with financing created opportunities for encouraging and attracting significant foreign direct investment in Uruguay's forest products industry. The case provides insights for countries seeking to support the expansion of forest industry investment and capacity through financing and regulatory policies.
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