Forest Sector Dependence and Community Well‐being: A Structural Equation Model for New Brunswick and British Columbia*

Abstract

Abstract Rural sociologists have a lengthy history of examining the relationship between natural resource dependence and community well‐being. This paper contributes to the understanding of this relationship in several ways. First, census data were used to describe forest sector dependence in two Canadian provinces where levels of dependence were much higher than those commonly found in the United States. Second, instead of linear regression analysis, a structural equation model was used to provide estimates for three indicators of well‐being (income, poverty, and inmigration) within a single model and then the model was tested for overall suitability. Using market segmentation theory, this paper shows that forest dependence and well‐being in New Brunswick is more consistent with many places in the United States where the pulp and paper industry alone is positively associated with well‐being indicators. In contrast, pulp and paper, logging, and lumber sectors in British Columbia are positively associated with well‐being. The model also reveals less transience in forestry towns than was previously assumed. These findings are discussed along with estimated effects between indictors of community well‐being.