Abstract
Competitiveness of Romanian wood processing industry/NWFP on external markets is based mainly on the comparative advantage of lower labour costs. Competitiveness was affected till recently by the regulation of timber prices, restriction on timber trade and monopolistic position of the national forest administration. In the last decade the low level of internal consumption of forest products and the system of selling timber from public estate (NFA and the communal forests) had a high impact on firm development, particularly for firms from harvesting and primary wood processing. Before the years 2000 - 2001, the development of the SMEs and of the associations of the private owners faced difficulties because of lack of public programmes addressing them. Financial system started only recently to have special programmes and/or credit lines for SMEs.
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