Export Of Forest Products Research Articles

Green Assessment of Imports and Exports of Wooden Forest Products Based on Forest Processing Industry: A Case Study of China

The research on international trade competitiveness is progressing continuously. Environmental factors have been gradually considered in the competitiveness of international trade. However, the green assessment system of international trade competitiveness is not perfect. Building a model based on the trade economy is complex. This study combines environmental pollution data based on the forest processing industry with trade flows. Environmental trade competitiveness, pollution treatment, and trade scale were selected as the three criterion levels to construct an assessment system. The weight and score of each index were calculated by the overall entropy method. The overall entropy method is more comprehensive than the traditional entropy weight method due to introduce longitudinal comparisons of time and category. This method is a dynamic evaluation model with analysis of three-dimensional sequential data tables. The use of this method enables the assessment model to analyze more comprehensively the green level of a country’s trade in wooden forest products in terms of time and product category. The green level of chemical wood pulp and sawn timber trade in China is at a high level. The pollution treatment and trade scale of chemical wood pulp and sawn timber attained a medium level of matching. The trades in particle board, hardboard, newsprint, carton board, and wrapping paper are at medium levels of green. The trades in medium density fiberboard and plywood have poor levels of green and need to improve their green production capacity. It is suggested that China should increase investment in scientific research, as well as establish policies to restrict and treat pollution in the industry of wooden forest products, while increasing the export volumes of products with high added value. China should attach importance to the pollution resulting from the manufacture of wooden forest products. The state should support policies for these producers reducing production emissions.

The ternary margins of China's forest products export and their determinants

This study first measures the extensive, quantity, and price margins of China's forest products export to 32 destinations based on a well-accepted method and data from 2000 to 2016. Then, it estimates the effects of relevant factors on these margins. It is found that before the 2008 financial crisis, each of the three margins played a major role in promoting the export growth; afterwards, the extensive and price margins became stabilized, making the quantity margin the only contributor to continued growth. While a leveling off of the extensive margin suggests a relative maturity of the industry in the international markets, the diminution of the price margin reflects the intensified international competition and the exhaustion of China's price advantage, as shown in the availability of cheap labor. Moreover, market size of destination country, fixed trade cost, variable trade cost, labor productivity, and free trade agreement had significant impacts, as expected, on the ternary margins. Finally, multiple steps are proposed to maintain and enhance the export growth.

Study on the Impact of 21st-Century Maritime Silk Road Initiative and Cultural Distance on China's Forest Products Trade

Xu, C.; Li, X.F.; Shen, A., and Zhou, K., 2020. Study on the impact of 21st-century Maritime Silk Road initiative and cultural distance on China's forest products trade. In: Qiu, Y.; Zhu, H., and Fang, X. (eds.), Current Advancements in Marine and Coastal Research for Technological and Sociological Applications. Journal of Coastal Research, Special Issue No. 107, pp. 403-407. Coconut Creek (Florida), ISSN 0749-0208.Strengthening maritime coopeation conforms to the development trend of the world. It is not only an inevitable choice for promoting more in-depth economic cooperation between countries, but also an important way for countries to promote regional peace and stability. Based on the panel data of forest products trade between China and 78 countries from 1995 to 2017, this study investigates the impact of the 21st-Century Maritime Silk Road (CMSR) initiative and cultural distance on China's forest product trade. The findings suggest that the CMSR initiative significantly increased China's total forest product trade and exports. The cultural distance has a U-shaped relationship with China's total forest product trade and exports. This implies that, as the cultural distance increases, China's forest product trade and exports both show a trend of decreasing first and then increasing.

Contradictory impact of the natural forest closing policy and sanitary–phytosanitary measures on the export of non-timber forest products: a case study of Vietnam

The gravity model was used in this paper to clarify the influencing factors of the export value of non-timber forest products (NTFPs) for Vietnam from 2003 to 2017. The estimates of this model indicate the importance of the size of economies, distance, common borders, exchange rates, average forest area, the natural forest closing (NFC) policy of the Vietnamese government, sanitary and phytosanitary (SPS) measures, and the interaction of SPS and importers’ GDP (SPS–GDP) as determinants of Vietnam’s NTFP exports. The main result of this study is the distinct and contradictory effects of the NFC policy and SPS measures. While the NFC policy increases the value of Vietnam’s NTFP exports, SPS measures significantly decrease the exportation. Using the SPS–GDP interaction variable yields a noticeable result: the negative impact of SPS on NTFP trade decreases with increasing income of NTFP importers. Furthermore, the NFC needs to continue to implement policies to increase investments in the NTFP trade and increase the quality of NTFPs from planting, to harvesting, to processing to meet the requirements of future importers. The findings offer several implications both in theory and in practice for trade policies and economic development theory based on Vietnam’s forest resources.

Common integrating factor in softwood log exports from the United States

Softwood logs comprise a large portion of forest product exports from the United States. Most of these exports have occurred between the Pacific Northwest region of the United States and several Asian countries. In this study, the extent and degree of market integration of softwood log exports from 1996 to 2018 are examined by co-integration analyses and permanent–transitory decomposition. Softwood log exports to Japan and South Korea appear to be in the same economic market and show a high degree of integration, while trade between the United States and China has evolved more independently. A detailed analysis is conducted on five prices related to Japan and South Korea with full-time coverage, and one common integrating factor is found and estimated. The price of export from the Columbia-Snake Customs District to Japan is identified as the driving force. Price responses to market shocks usually occur within four months. These findings have implications for government agencies and participants in the market of softwood log trade.

Impact of Multi-Dimensional and Dynamic Distance on China’s Exports of Wooden Forest Products to Countries along the “Belt and Road”

National distance (ND) is the key factor that affects international trade but the traditional trade gravity model only considers spatial distance, which is not enough. This paper therefore constructs a trade gravity model and a Generalized Moment Estimation Model (GMM) based on four dimensions—spatial distance (SD), economic distance (ED), institutional distance (ID) and cultural distance (CD)—comprehensively analyzing the impact of the heterogeneity represented by national distance on exports of wooden forest products (EWFP) from China to countries along the “Belt and Road” using panel data from 2001 to2018. The results show that the impacts of the four types of ND on China’s EWFP are different and that a major change has taken place since the “Belt and Road” initiative was proposed, within which CD has become the key factor that hinders exports, while the traditional SD is not significant. Therefore, using NDs instead of the SD of the traditional trade gravity model is much more reasonable. Finally, this paper proposes some suggestions to reduce the ND between China and the route countries and to promote cooperation among them.

Strategic directions of foreign trade activity of the forest industry of Russia

The most complete realization of the export potential of the Russian forest industry on the world market provides for the implementation of a strategic scenario for the development of the industry. The article analyzes the reality of achieving forecast indicators of priority areas for non&resource export of forest products. To stimulate investment in timber production, the authors proposed the use of a special investment contract mechanism, which has already found application in other sectors of Russian industry.

Study on Sustainable Development of Forest Products Industry Based on Circular Economy

China is a country with insufficient forest resources, small forest area, small number of resources and unbalanced regional distribution. China is also a typical big country of forest products production and consumption, and also the largest forest products processing and production base, and the most important forest products processing and export country in the world. The development of forest product industry needs to consume a lot of forest resources, and the traditional industry mainly depends on the supply of natural forest. Modern forest product industry is an industry that makes full use of advanced science and technology, based on the principle of circular economy, efficiently uses and recycles forest resources to meet the increasing demand of human beings for forest products. The sustainable development of forest product industry in China needs circular economy. Circular economy is the fundamental way to solve the contradiction between economic development and ecological environment. This paper introduced the basic concept of circular economy and the general situation of the development of modern forest product industry. The necessity of the development of circular economy and the realization of sustainable development of forest product industry were discussed. Suggestions were also put forward for the realization of circular economy in forest product industry.

Climate Change Agent: An Evidence from Deforestation Model in Indonesia

In this study, model of deforestation is expressed as a function of the direct causes, each of these expressed as a function of the indirect causes. The socio-economic growth variables, such as population and GDP growth, were used as indirect causes of deforestation. The model assumed that deforestation was caused by wood consumption, forest product export, conversion to cropland, and forest fire. This study also calculated the elasticity of forest fire deforestation with respect to the population based on forest fire data between 1991 and 2000. Finally, it analysed the carbon emissions due to deforestation rate in Indonesian forest.

The impact of spatial agglomeration on export of forest products manufacturing in China: evidence from enterprises’ data

ABSTRACTIndustrial spatial agglomeration is an important feature of modern industry development; however, little academic attention has been paid to the impact of industrial spatial agglomeration on the export of enterprises. Based on a large sample from a Chinese industrial enterprise database, this paper applies the EG index method to measure the spatial agglomeration level of forest products’ manufacturing and further explores its impact on exports. The results show that the spatial agglomeration level improved slightly in China’s forest products’ manufacturing during 1999–2009. However, the spatial agglomeration level of China’s forest products’ manufacturing is lower than is the average level of the total manufacturing industry. The regression results show that the level of spatial agglomeration has a significant positive impact on the export of enterprises in China’s forest products’ manufacturing industry. This may imply that the spatial agglomeration effect has not yet been fully exploited, and the level of spatial agglomeration in China’s forest products’ manufacturing industry needs to be further improved.

An Assessment of Trade Facilitation’s Impacts on China’s Forest Product Exports to Countries Along the “Belt and Road” Based on the Perspective of Ternary Margins

With the reduction of traditional tariff and non-tariff trade barriers, trade facilitation measures, such as improved port efficiency and the customs environment, have become increasingly important for improving the structure of export growth and exploring the trade potential of forest products. Our research divided China’s export growth of forest products into extensive margins (variety), quantity margins (quantity), and price margins (quality), and discussed how trade facilitation impacted China’s forest product export growth structure from the perspective of ternary margins. An evaluation system of trade facilitation was constructed, and principal component analysis was used to measure the levels of trade facilitation of 13 countries which had large trade flows of forest products with China along the “Belt and Road”. In addition, we used transnational panel data and the extended gravity model to analyze the impact of their trade facilitation on the ternary margins of China’s export growth. In order to overcome the endogeneity of the model, the 2 stage least squares (2SLS) method was used and the first-order lags of trade facilitation indicators were selected as instrument variables. The decomposition results of ternary margins showed that the “low price and high quantity” export growth pattern had remained in China’s forest products trade, and the 2SLS regression results indicated that the improvement of trade facilitation had a significantly positive impact on the quantity margins and price margins, but no significant impact on the extensive margins. It is suggested that China should make differentiated investments to countries along the “Belt and Road” based on their different levels of trade facilitation, in order to promote constant improvement of product quality and optimization of export growth structure in the forest products industry.

Kesiapan Industri Rumah Tangga Mebel terhadap Penerapan Sistem Verifikasi Legalitas Kayu di Yogyakarta

Illegal logging and illegal timber trade have been ones of major causes of deforestation in many countries, including Indonesia. Indonesian Timber Legality Assurance System (Sistem Verifikasi Legalitas Kayu/SVLK) is an instrument to improve governance of timber sector. The system ensures the legality of timber harvested, transported, processed, and marketed by Indonesian forestry enterprises. SVLK is developed through engagement of multi-stakeholder (scholars, business association, relevant ministries, and NGOs). Implementation of SVLK is mandatory. Since implemented, SVLK has increased export of forest products. However, the export is dominated by large scale enterprises. On other hand, many of small and medium scale industries are yet registered. Micro and small scale industries have basic difficulties to meet the applicable standards of SVLK. According to background and issues, the study aims to analyze distribution network, small business profit, cost of SVLK implementation, and the application of svlk feasibility financial simulation on small scale industries furniture. Primary data collection was carried out with purposive sampling method through deep interview and questionnaires. The result showed there were 3 alternative distribution channels of community wood marketing in Yogyakarta. Each distribution channel has different characteristics. Cost percentage of SVLK implementation is 4.00%. The actual challenge is in the equally distributed information and incompatibility between the requirements of SVLK and the life of small scale industries. SVLK requires Rp 7.787.500,- in early periode and Rp 6.230.000,- to be paid every 2 years. The total cost is Rp 32.707.500,- for 10 years. There are only 7% of small scale industries knowing about SVLK. Small scale industries which don’t know clearly is 50 %, while other small scale industries claim to be uninformed. Based on the study, NPV Rp 10.011.212,-, BCR 1,13 dan investment return rate 18%. Feasibility financial simulation showed SVLK implementation is possible, although has little positive sales development. Small scale furniture industries with 144 m3 raw material per year usage have to target 12% sales development in first year. In second year of implementation, small scale furniture industries cashflow has negative point. It caused by surveillance cost. Small scale furniture industries interest to SVLK implementation was in minimum point. Small scale furniture industries interest to SVLK implementation can be increased by certification financing programs and the export market assurance.

Export of non-timber forest products in the context of free movement of goods to the European Union market

The tendency to conquer foreign markets emerges as one of the starting ideas when setting up each company. From the point of view of domestic companies, the target markets are those located within the European Union (EU), which exists and operates under the Single Market system. If you look at the part related to non-timber forest products (NTFP), it can be pointed out that in the last period it has become wider and has increasingly gone beyond local limits. In the context of the global orientation towards organic products, the aspiration of domestic companies in trying to place their products to a foreign, primarily European market is justified. The subjects of work are: treaties of establishment, conventions between Member States and Union agreements with third countries and international organizations, which have stronger legal force than other (secondary) sources, such as: regulations, directives and resolutions, as binding acts, as well as recommendations and opinions, as non-binding acts. The aim of this paper is to present and analyze the functions of the competent institutions and procedures that follow the export of products and documentation necessary for the implementation of the export procedure, with special reference to the NTFP.

О СТРАТЕГИИ РАЗВИТИЯ ЛЕСНОГО КОМПЛЕКСА РОССИИ

The Russian forest sector is running down. To remedy the situation, a strategy for developing the forest sector of the Russian Federation until 2030 was developed. The strategy basically repeats the mistakes of various concepts, strategies and programs developed in recent years for the Russian Federation as a whole and its subjects.Essentially, these documents are aimed at developing the forest industry, i.e. use of wood. The strategy analysis shows the unsatisfactory nature of this document, as it is based on the provisions of the detrimental Forest Code of 2006.The strategy primary error is underresourcedplanned indicators of forest products export and domestic consumption of wood raw materials. The strategy does not fix problem of forestry financing under a market economy. Based only on wood accounting, forest evaluationsare counterproductive for the forest sector, as they underestimate the value of forest areas, which are of great environmental and social importance. Further development of the forest sector will largely depend on the ability of the Federationto dialog withits subjects, forest companies and enterprises, scientific and public organizations in the field of forest policy and practice.

Duration of U.S. forest products trade

The United States has been a leading participant in the global forest products market. Duration analysis is employed to measure the duration of U.S. exports and imports of forest products over 1996–2016 and to examine the underlying determinants. Outcomes from the descriptive statistical analysis reveal that the duration of U.S. forest products trade is remarkably short, with a median duration of one quarter based on the quarterly data, or one year for the annual data. The duration of trade spells also varies across different types of forest products. Based on the discrete-time duration model, several determinants of export and import duration are identified at the country and product level. Gravity-type variables (e.g., distance and income) are found to affect the likelihood of trade ceasing. Better endowments in forest resources can improve the survival rate of forest products trade. In designing policies to reduce the pressure of import growth, promote exports of forest products, or have a better trade balance, the differences in trade direction and product features should be considered.

The impact of international efforts to reduce illegal logging on the global trade in wood products

ABSTRACTIllegal logging has become a global issue because of its adverse effects on biodiversity and climate change. In order to reduce illegal logging, many countries around the world have introduced regulations for the international trade of forest products. This paper examines the effects of these efforts on international trade of forest products. The analysis is conducted using the Heckscher–Ohlin–Vanek model, where the number of regulations against illegal logging is used to describe the level of efforts, and is included as an explanatory variable for national net export of forest products. The results show that efforts against illegal logging have had significant and positive impacts on the net export of forest products.

Examining the Relationship between Regulatory Quality and Forest Product Exports to India: A Gravity Model Approach

Abstract The value of aggregate forest product exports to India has increased from about $1.5 billion in 2003 to about $5.4 billion in 2013. Although many of the forest product resources can be sourced from within India, the subcontinent must also source forest products from trading partners, in the form of wood product exports. This presents many economic challenges and opportunities for wood product markets and trade, as India is the second-largest importer of wood products in the world. In this study, we focus on the effect of regulatory quality on forest products exports by partner countries to India. Using a panel of trade flows during 2009 through 2013 of 143 partner countries exporting forest products to India, we estimate an augmented gravity trade model to capture the effect of relevant variables on the outflow of aggregate forest products and disaggregate paper and paperboard, wood pulp, fiberboard, veneers, sawn wood, industrial roundwood, and plywood products from partner countries to India. Results from the analysis are mixed; regulatory quality is found to have positive correlation with exports to India in some cases (paper and paperboard products and wood pulps) and no correlation in a few instances (fiberboard, veneer sheets, sawn wood, industrial roundwood, and plywood). Other explanatory variables such as the distance between the partner country and India, forest area of partner country relative to forest area of India, gross domestic product, population, and trade agreements are mostly found to have positive or negative significant effects on trade, varying across different sectors.

Концептуальные подходы к формированию лесопромышленных кластеров в России

World experience shows the effectiveness of the creation of clusters in various industries. A lot of work and research domestic and foreign scholars and practitioners are dedicated to study and development of mechanisms of realization of industrial policy. The article analyzes the main indicators of the forest industry and forestry in Tomsk region in recent years, the basic provisions are revealed, Factors determining the development trends of the industry are analyzed. The authors identified the major systemic problems hindering the progressive development of forest sector in Tomsk region, including low level of development of periodic yield, the lack of transport and economically available forest resources, inadequate production structure and export of forest products, financial situation of enterprises of the sector, insufficient staffing, weak territorial cooperation of the enterprises and organizations. The article defines the objective conditions for creation of timber industry cluster in Tomsk region, goals, objectives and directions of sustainable development of the forest sector in Tomsk region on the basis of cluster approach are identified. Among the main areas that determine competitiveness of products and possibility of increasing the efficiency of forest management, the following issues are highlighted: development of deep processing of wood through the use of low-grade wood and wood waste, development of transport infrastructure in forests, improving human potential, expanding the range of manufactured timber enterprises in the cluster of products and implementation of joint projects. The conclusions can provide theoretical basis for further research in the field of economic security and development of timber processing complex and forestry. Obtained results can be used both by researchers in further research work to explore issues of cluster development of timber industry and regional authorities and business structures functioning in the sphere of forest industry.

Extravagance in the commons: Resource exploitation and the frontiers of ecosystem service depletion in the Amazon estuary

Estuaries hold major economic potential due their strategic location, close to seas and inland waterways, thereby supporting intense economic activity. The increasing pace of human development in coastal deltas over the past five decades has also strained local resources and produced extensive changes across both social and ecological systems. The Amazon estuary is located in the Amazon Basin, North Brazil, the largest river basin on Earth and also one of the least understood. A considerable segment of the population living in the estuary is directly dependent on the local extraction of natural resources for their livelihood. Areas sparsely inhabited may be exploited with few negative consequences for the environment. However, recent and increasing pressure on ecosystem services is maximised by a combination of factors such as governance, currency exchange rates, exports of beef and forest products. Here we present a cross methodological approach in identifying the political frontiers of forest cover change in the estuary with consequences for ecosystem services loss. We used a combination of data from earth observation satellites, ecosystem service literature, and official government statistics to produce spatially-explicit relationships linking the Green Vegetation Cover to the availability of ecosystems provided by forests in the estuary. Our results show that the continuous changes in land use/cover and in the economic state have contributed significantly to changes in key ecosystem services, such as carbon sequestration, climate regulation, and the availability of timber over the last thirty years.

Forest products exports and economic growth: evidence from rich countries

The forest sector contributes a significant share to national income. The existence and magnitude of causal relationships between forest product exports and economic growth is thus important to understand not least for policy issues. It has vital implications for policy-makers enacting proper development strategies. This causality is usually analyzed using the export-led economic growth hypothesis. International trade is affecting economic growth through enhanced competition and specialization. Export, more specifically, foster economic growth via the accumulation of foreign exchange, by stimulating efficient investments in the right sectors and by allowing for improved economies of scale. Surprisingly, practically no studies have been done analyzing the forest products export-led economic growth hypothesis. Thus, the current study fills an important gap in the literature. The study attempts to test the forest product export-led growth hypothesis for 22 economies over the period 1970 to 2011. Various generations of panel unit root and cointegration tests are applied. The time frame and the selection of countries are purely dictated by the availability of data and the amount of existing productive forest area. The econometric tests are based on augmented Dickey-Fuller unit root and cointegration tests. These tests are necessary before assessing the impact of forest product exports on GDP. The connection between economic growth and forest products exportation is analyzed using an error correction model (ECM) based panel causality test structure. The ECM is subsequently used to estimate short- and long-run elasticities. The series are found to be integrated of order one and cointegrated, especially when applying the third-generation tests. Uni-directional causality running from forest product exports to economic growth is uncovered in the both the short-run and the long-run. Moreover, forest products exportation is found to positively affect economic growth. The short-run elasticity reveals positive and significant income elasticity. A 1% increase in forest product exports will lead to a 0.022% increase in economic growth in the short-run and 0.002% in the long-run. The regional dummy is also significant and positive, implying that countries with significant forest land coverage are bound to experience higher economic growth. The findings will help policymakers in their projections and implementing natural resource and forest policies. Unidirectional causality implies forest product exports can be used to predict economic growth in both short-run and long-run but not vice versa. In general, the results support the ELG hypothesis. Promotion of forest product exportations can lead to a multiplier effect.