Abstract
AbstractChina has become the largest importer of roundwood and lumber products in recent years. In this study, the degree of competition among major supplying countries in China's import market is measured through the inverse residual demand elasticity over 1995–2015. Time-series properties of the data are considered through the autoregressive distributed lag model. The analysis reveals that market power exists in roundwood and lumber markets for a few supplying countries. The suppliers in the lumber import market have more market power than those in the roundwood market. Individual countries with substantial market power have more fluctuations in trading volumes.
Highlights
China has become a leading participant in the global wood products market since the 1990s
China has spent more than 13 billion U.S dollars on an annual basis to import roundwood and lumber products worldwide to meet its timber demand from domestic and export-oriented manufacturing activities
The elasticity of inverse residual import demand is estimated to measure the degree of market power for three major wood products: coniferous roundwood, coniferous lumber, and nonconiferous lumber
Summary
China has become a leading participant in the global wood products market since the 1990s. Given its limited forest resources per capita, domestic wood fiber supply in China is insufficient relative to the demand. Participation in the international market by China has been realized through importing raw materials and exporting finished wood products. Raw materials include both roundwood ( referred to as unprocessed timber, sawlog, or log) and lumber (or sawnwood) products. China’s imports of roundwood and lumber products have been more than 30% and 20% of world total in recent years, respectively (Food and Agriculture Organization of the United Nations, 2016). From 2011 to 2015, China’s total annual spending on roundwood and
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