Wood Export Research Articles

The potential impact of legality requirements for China’s imported timber: a global forest product model‐based analysis

Utilizing the Global Forest Products Model (GFPM), this paper analyzes the potential impacts of China’s timber import legality requirement policies. Two alternative scenarios are compared with the baseline scenario: (1) China requires that imported timber must comply with the requirements of Verified Legal Compliance (VLC), (2) China imposes tighter requirements for imported timber, which must come from sustainably managed forests and meet Forest Certification (FC) requirements. The results show a decline in log production but an increase in processed wood exports to high‐risk countries, suggesting a move towards more valuable wood processing. Both high‐ and low‐risk countries are expected to see an increase in forest stocks. Welfare analysis indicates that high‐risk countries will benefit from industrial upgrades, while China might face welfare losses. Nevertheless, the enforcement of legal standards for timber imports into China is likely to enhance the perceived legitimacy of the sources of domestic timber materials, thereby facilitating the re‐entry of processed timber products into developed markets. This study proposes that China’s timber import regulations could offer mutual advantages, aiding in the fight against illegal logging and encouraging the legal timber trade.

Evolving Perspectives: the resurgence of wood in Quebec architecture

Over the past two decades, Quebec has undergone a radical transformation in its approach to using wood in architecture, spurred by trade constraints on wood exports to the United States. This evolution is the outcome of synergistic efforts that have facilitated a transition resulting in significant technological and architectural advancements. Historically, Quebec’s vast forest resources have played a pivotal role in the development of local timber construction, particularly through traditional timber frame techniques. However, the 19th century witnessed a shift towards light-frame construction methods like the Balloon Frame, driven by industrialisation and urbanisation. By the mid-20th century, concrete gained dominance, the fruit of prioritising aesthetics over ideology in architectural design, especially in Montreal, where concrete structures flourished. The 1980s trade dispute with the United States marked a turning point, fostering innovation and a paradigm shift in wood use. Collaboration between industry and academia, exemplified by the Krüger Pavilion and the founding of FP Innovations, has propelled large-scale wood construction forward. Cecobois further supports this trend by facilitating access to technological innovations. This era of change highlights both the potential and limitations of wood in architecture, showcasing its role as a versatile and eco-friendly material that can enhance architectural design while facing technical challenges that sometimes limit its visibility and application.

India, Repression, and Ecologically Unequal Exchange of Wood

A recent cross-national article by Sommer, Restivo, and Shandra finds that wood exports to India from peripheral nations are related to levels of forest loss in the peripheral nations. While it suggests new insights into how semi-peripheral nations engage in ecologically unequal exchange, we contend this finding is incomplete and offers only a partial explanation of forest loss. We draw on Evans’s idea of a “triple alliance” to argue that in an effort to promote industrialization, repressive nations in the periphery try to create a “good business climate” for foreign firms by offering investors economic incentives, regulatory concessions, and (imposed) political stability. Thus we hypothesize that greater wood exports to India are related to forest loss in peripheral nations with worse repression. We find support for this hypothesis by regressing data on 67 peripheral nations.

Daya Saing Dan Komplementaritas Perdagangan Kayu Indonesia: Kasus Kawasan Asia-Pasifik

Indonesia trades ten groups of wood in the Asia-Pacific region. Many forest industry problems occur during trade. Competition and interdependence in trade are research objectives. The research secondary data source is taken from UN Comtrade 2011-2021 and analyzed using the Export Similarity Index (ESI), Revealed Comparative Advantage (RCA), Trade Complementarity Index (TCI), and Intra-Industry Trade (IIT) methods. The research results show that the wood export trade between Indonesia and competing countries competes weakly with each other in the six partner countries. Indonesia is competitive in the products SITC 245 (fuel wood (excluding wood waste) and wood charcoal), SITC 248 (wood, simply worked, and railway sleepers of wood), SITC 251 (pulp and waste paper), SITC 634 (veneers, plywood, particle board, and other wood, worked, n.e.s.), SITC 635 (wood manufactures, n.e.s.), and SITC 641 (paper and paperboard). On the other hand, Indonesia and partner countries almost complement each other as trading partners in terms of exports and imports of wood. However, the integration of Indonesian wood trade with partner countries is considered weak. Products SITC 248 (wood, simply worked, and railway sleepers of wood), SITC 251 (pulp and waste paper), SITC 641 (paper and paperboard), and SITC 642 (paper and paperboard, cut to size or shape, and articles of paper or paperboard) are several product industries that have led to intra-industry trade. Policy recommendations are to utilize resources optimally, develop the wood processing industry to produce finished wood products, and improve the quality and standards of wood products in accordance with policies in trade cooperation.

The Relationship between Large Wood Export and the Long-Term Large Wood Budget on an Annual Scale in Japan, Using Storage Function with the Lumped Hydrological Method

In this study, we aimed to verify the two relationships on large wood export, as follows: (1) the relationship between large wood recruitment and landslides triggered by intense rainfalls and (2) the relationship between large wood export and the long-term large wood budget on an annual scale, based on the direct export of large wood caused by an increase in large wood recruitment with extreme rainfall events, as well as the baseflow of large wood, which is mainly old large wood recruitment stored at the slopes and in the stream. To reproduce these two relationships, the model consisted of two frameworks, as follows: (1) the rainfall-induced analytical shallow landslide model, with 30 m spatial resolution for large wood recruitment and (2) the double/triple storage function, with the lumped hydrological method at a watershed scale for large wood entrainment. Application of the model to 212 dam reservoir watersheds across Japan resulted in reproducibility in the estimation of large wood export volumes in 134 of the target dam reservoir watersheds, which contribute 63.2% of the target basins. This indicated that our results verified these two relationships as primary relationships. To analyse the difference in large wood export systems, a frequency analysis was conducted using correlation analysis based on large wood export volume and the cumulative values of six patterns of large wood recruitment volumes. The results indicated that there might be differences in large wood export systems between the watersheds represented by the double storage function model and those represented by the triple storage function model.

Wartime Trade Policy Measures in Comparison of the Historical Periods of the First World War and the Special Military Operation

With the beginning of the special military operation (SMO), a new type of foreign trade policy is forming, based on restrictions. History shows that the practice of restrictions on trade operations is not new. The article compares Russia’s trade policy measures introduced during the First World War of 2014–2018 and the SMO, which began in 2022. The goal is to identify tools that are not currently used. Restrictions on exports and imports, measures to stimulate imports, and measures to build new trade routes are considered. Even before the start of the SMO, from the moment of political aggravation, Russia limited the export of wood and fertilizers, which contradicted the Protocol on Accession to the WTO and the refusal of quantitative restrictions. Unfriendly countries that applied preventive sanctions against Russia, with the beginning of the SMO, denied Russia most favored nation treatment. As during the First World War, grains, flour and sugar were among the food products subject to government export restrictions. Both periods were characterized by measures to stimulate imports in an effort to provide industry with raw materials and equipment. Import restriction measures in the first period applied to luxury goods, in the second they took the form of sanctions against unfriendly countries. The war period was characterized by growing interest in the northern sea routes. Compared with World War I, modern export restriction policies were more varied in terms of product coverage, but lacked the specific details by export directions that were developed a century ago. Many of the modern measures allow exemptions only in relation to EAEU countries. In our opinion, exemptions from restrictions on the export of humanitarian goods could be made for the developing countries which are most in need of grain or fertilizers.

Biomass for energy production characteristics, amount and distribution in Latvia

Biomass is one of the largest renewable energy sources in Latvia. Since 54,7 % of the state area is covered by forests, the firewood, wood chips and pellets play a significant role in the heat production, especially at households and municipal heating facilities. Wood chips and pellets are also important export products. Changes in the energy-producing wood export since 1997 are explained. Other kinds of biomass that can be used for heat and electricity production are various agricultural and food production residues, livestock breeding buy-products, sewage sludge, combustible (organic) part of household and industrial wastes, etc. In the present paper, a variety of biomass forms used as the energy sources are analysed. The characteristics of different types of wood biomass and the variations in their parameters are considered. The following determined parameters of biomass are presented: the calorific value, ash content, bulk density, melting point of ashes, sulphur and chlorine content, and others. The biomass energy potential calculated for different regions of Latvia (the data of 2007) is discussed. On the map of Latvia the amount and energy potential of agricultural straw and other biomass for different regions are shown. Some recommendations elaborated how to improve biomass utilization for heat and electricity production.

ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ САМОСІЙНИХ ЛІСІВ В КОНТЕКСТІ ЗБЕРЕЖЕННЯ ЛІСОВИХ НАСАДЖЕНЬ ПРИРОДНОГО ПОХОДЖЕННЯ

In the presented material, an attempt was made to generalize the existing regulatory and legislative basis of Ukraine regarding the increase of forest cover, protection and preservation of self-forested areas of state and communal ownership, as well as to form the main practical problems and prospects in their use. For this, the author considered the unique importance of self-seeding forests in the context of ensuring the ecological properties of forest plantations, in particular, carbon deposition and oxygen production; the scale of self-forested lands is determined; a quantitative assessment of the areas of self-seeded forests transferred to permanent forest use to the State Enterprise "Forests of Ukraine" from the united territorial communities is given, using the example of the Chernihiv region; the existing trend of exceeding the volume of emissions from the increase in arable land in Ukraine over the volume of absorption from forests, swamps, and steppes is noted. The article presents a number of negative trends regarding the increase in the volume of wood harvesting, including for military needs, which causes the felling of forest plantations of natural origin. The shortcomings of the existing legislative mechanisms regarding the lack of restrictions on the activities of agricultural producers on pastures, hayfields, coastal strips, floodplains and other carbon-rich ecosystems are indicated. Ways to increase the volume of sold wood for the national economy in the conditions of a full-scale invasion due to effective anti-corruption, restriction of wood exports and effective functioning of the State Environmental Inspection of Ukraine are presented. An analysis of the legislation of the European Union regarding mechanisms for the preservation and restoration of carbon-rich ecosystems, including the restoration of most drained peatlands, the introduction of restrictions on access to the EU market for agricultural products and wood, the production of which has led to deforestation, has been carried out, which should be a reference point for the state leadership in the declared European integration path of Ukraine's development.

Foreign Trade of the State of Acre, Brazil, Between 2019 and 2022: An Analysis of Commercial Interactions

Purpose: The objective of this study was to analyze import and export operations in the state of Acre between 2019 and 2022, aiming to understand the importance of local foreign trade and its recent advancements. Theoretical framework: The continuous evolution of trade interactions between nations is crucial for economic development, regardless of a country's economic stage, and foreign trade emerges as a fundamental pillar for this growth. However, despite Brazil being one of the largest global economies, its exports still do not reach their full potential, highlighting the importance of studying foreign trade, especially in the context of the state of Acre, due to its strategic location and potential in the Amazon Region. Methodology: This study adopts a descriptive approach and quantitative methodology to meticulously analyze import and export operations in the period from 2019 to 2022, using official data from the Ministry of Development, Industry, Trade, and Services (MDIC), available on the Comex Stat electronic platform. Findings: The analysis recorded a notable increase in exports, mainly to Peru, the United States, and Hong Kong, driven by the growth of exports of wood, nuts, corn, and soybeans, while imports also grew, with China being the main source of imported products. Maritime transport emerged as the predominant mode for both exports and imports, highlighting the importance of the Pacific Highway for the state's commercial transactions. Research, practical & social implications: Future research should investigate how the understanding of the presented data can influence the planning for sustainable economic growth in Acre, as well as its global integration in trade, considering relations with strategically neighboring countries. Originality/value: The results indicate that Acre is strategically expanding its trade based on diversification, integration with key partners, and logistical adaptation, positioning itself for a relevant role in the global scenario and contributing to the development of the Amazon Region.

Assessing the Role of Forest Certification and Macroeconomic Indicators on Croatian Wood Exports to the EU: A Panel Data Approach

In the wood industry, forest certification stands as a pivotal factor that supports the implementation of sustainability and market acceptance. Recognizing its significance for both the wood sector and exports, this study explores the impact of Forest Stewardship Council (FSC) Chain of Custody certificates on the export of Croatian wood to European Union (EU) countries. Through a dynamic panel data analysis using the system Generalized Method of Moments (GMM) estimator, our aim is to uncover the implications of this certification on wood industry exports. Additionally, the model assesses other determinants of wood exports, such as GDP, GDP per capita, remoteness, manufacturing value added, unemployment, and the real effective exchange rate. The results indicate that the number of FSC certificates during the observed period (2000–2021) have a positive and significant impact on wood exports from Croatia, suggesting that wood certification plays a predominant role in shaping such exports. Furthermore, the econometric analysis confirms the statistical significance of selected macroeconomic indicators, including nominal Gross Domestic Product (GDP), GDP per capita, unemployment, added value of manufacturing and real effective exchange rate, on wood exports. This study emphasizes the importance of forest certification in promoting wood exports and improving market competitiveness, offering a unique contribution to the literature by considering a range of macroeconomic factors in the analysis.

An Analysis on the Competitiveness and Specialization Levels of the Countries in the Export of Wood and Articles of Wood

An Analysis on the Competitiveness and Specialization Levels of the Countries in the Export of Wood and Articles of Wood

The impact of forest management certification on exports in the wood sector: Evidence from French firm-level data

Forest certification, originally introduced to promote sustainable forest management and protect forests from threats such as deforestation, has become a large-scale market tool. There is no consensus in the literature on the impact of forest certification on exports. Few studies have analyzed the impact of forest management certification on exports, and none have analyzed this effect at the firm level, taking into account firm heterogeneity. The current paper aims to fill this gap by analyzing the impact of the difference in the level of forest management certification between an exporting country and importing or destination countries. In particular, we determine how this impact differs by firm size. Our study focuses on the Programme for the Endorsement of Forest Certification (PEFC). We use a panel of exports of wood and wood products at the level of French firms. We find that when the level of forest management certification in the exporting country increases relative to that of the importing countries, exports increase; but this occurs to a lesser extent as firm size increases. This result is robust to the various additional analyses. For example, an increase in the difference in the share of PEFC-certified forests by 0.15 is associated with a 90% increase in the value of exports. We also find heterogeneity by product category, geographic area, and income level of destination countries. Our study highlights the role played by forest certification on exports and the need to develop forest certification in a market-driven manner.

ACEH EAST COAST COMMUNITY ECONOMIC DEVELOPMENT (HISTORICAL STUDY AND EXISTENCE OF KUALA LANGSA PORT AND ITS CONTRIBUTION TO THE GOVERNMENT OF 1900-2018)

The Port of Kuala Langsa in 1920 had a great opportunity for economic development during the Social Pacificization period, in addition to the interests of the Netherlands and the people of the east coast. trade routes: Asia and Europe. This port is supported by land transportation. Atjeh Tram Langsa supplies goods from the north coast straight to the port of Kuala. Atjeh Tram Tamiang took part in supplying rubber and palm oil commodities to the port of Kuala during the Dutch era for export-import trade abroad. Between 1916 and 1930, the export of traditional crops such as betel nut, 942,591 tons of pepper, and 8,300 tons of rice were to Penang. Modern (1925“1935) rubber plants (183,550 tons) and palm (9,819,047 tons) were exported to Europe. During the Japanese occupation (1942“1945), Kuala Port's exports and imports decreased drastically. After Indonesia's independence, in 1987, the port of Kuala resumed operations in the non-oil and gas sector, with exports of Ply wood of 4,216,402 tons and grumb rubber of 1,839,600 tons from PT. Gruti Bayeun Aceh Timur. Charcoal wood exports 5,534,000 tons to Hong Kong, Japan, Singapore, and Taiwan from Bayeun, Sei Pauh, and Sei Yu. Import types of goods: Phenol (7159 tons) and methanol (7159 tons). Between 1987 and 2002, at the port of Kuala, other goods were imported: cars, motorcycles, and drugs. In 2003“2007, they were again imported from Singapore and Malaysia: 9,206 tons of methanol, 6,384 tons of minerals, and 9,396 tons of basic necessities. In 2008“2018, Kuala Port still existed as a trade center in the economic sector of the Langsa City government with Asia based on the interests and economic growth of the community. The aims of this study were (1) to examine the pioneering of Kuala Langsa port as a maritime port on the east coast of Aceh; (2) the educational passification policy and Kuala Langsa port; (3) to find out the study of Kuala Langsa port facilities and infrastructure and its development in the east coast area; (4) to examine the role of the Kuala Langsa port in the export-import trade sector; and (5) to examine the impact of the Kuala Langsa port as the center of the government's economic area based on the people's economic interests. This study uses a critical historical method, the substance of which excludes inauthentic material and concludes that testimony that can be trusted from original material The critical historical method consists of four steps in the research process: collecting sources (heuristics); primary, secondary, and tertiary; criticizing sources, both internal and external; interpreting facts obtained from these sources; historiography; reconstructing existing facts and interpreting them in the form of historical writings; and critically synthesizing facts. The results of research on the Kuala Langsa port since the days of the Dutch, Japanese, and Indonesian governments were made as an international and transit port until it received international status in 2019. The conclusion is that the Kuala Langsa port has succeeded in contributing to the community and the government in the export sector of community and private government-owned plantation products.

THE ECONOMIC COMPONENT OF FOREST INDUSTRY DEVELOPMENT UNDER CONDITIONS OF MILITARY CONFLICT

An analysis of the financial and economic activities of forestry for 2021–2022 was carried out and the impact of the full-scale armed aggression of the Russian Federation on their key indicators was determined. The current state of the forestry industry of Ukraine was assessed. The main factors that exert a system-forming influence on the economic development of forestry in Ukraine are considered. Attention is paid to the issue of the export potential of Ukrainian forestry in the current conditions. The key problems of forestry, which are related to the export of wood to the countries of the European Union, have been identified, in particular, those which related to wood certification. Also, the negative modern factors in the forestry of Ukraine are defined and characterized, in particular the factor of illegal felling, the key enterprises where similar facts are recorded are highlighted. Particular attention is paid to the environmental damage caused to the forest industry as a result of the ongoing active phase of hostilities. The ways and proposals for overcoming the modern economic problems of the forest sector are outlined, in particular, for the formation of a complex ecological and economic mechanism for the post-war rehabilitation of forestry lands, which were damaged as a result of hostilities. Attention is paid to the role of the public in ensuring proper control over the activities of forest administrations and ensuring the transparency of forestry activities as a whole

Лесной комплекс Дальневосточного федерального округа: тенденции развития в 2022–2023 гг.

An assessment is made of the impact of ongoing sanctions shocks, as well as internal export restrictions on the national and Far Eastern forest complexes. It is shown that the crisis of 2022 only aggravated the situation previously formed by institutional innovations in the forest regions of the Far East. The crisis did not have a catastrophic impact on the state of timber industry enterprises, which managed to both partially maintain external demand and partially offset the ban on wood exports by supplying the domestic market. In 2023 compared to 2022, despite the increase in profitability from the supply of products to the foreign market as a result of the rising dollar exchange rate, improving conditions in the Chinese market due to the easing of covid restrictions, the negative effect of sanctions shocks (market closures, restrictions in logistics, reduction in imports of equipment and materials) have intensified. As a result, there was an increase in losses of enterprises due to delays in the transportation of timber cargo, an increase in transport costs, the cost and delivery time of imported spare parts, which led to a decrease in production activity in the main forest regions of the Far Eastern Federal District, which has negative social consequences, especially in remote settlements. In conditions of low population density, the development of domestic demand for timber products in the Far East, even with government support, is uncompetitive in comparison with external demand, which is increasingly oriented toward the monopsony Chinese market

Импортные потоки стран Азиатско-Тихоокеанского региона: место товаров дальневосточного экспорта

Based on the analysis of import flows of the Asia-Pacific (NEA-3 and ASEAN) in the period 2015–2021, it is shown that a stable commodity-geographical structure of supplies has developed in the region. About half of the volume of imports in USD falls on computers, communications equipment, parts and components used in their production; mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes; iron ores and concentrates. At the same time, there is a high level of interdependence of mutual trade flows within the region. Such an import structure is based on the complementarity of the supply and demand of the Asia-Pacific countries. It is shown that only the USA, Australia and Saudi Arabia are large-scale external exporters for ASEAN+3. Of the traditional exports of the Far Eastern Federal District (FEFD), only fuel and energy products had a stable niche with a steady but small-scale demand for fish, forestry and metallurgical products. Thus, for the NEA-3 countries, the Russian Federation was an important supplier of energy resources, and Japan and the Republic of Korea got about half of fuel and energy products from the Russian Far East. Russia was also the largest supplier of fish and seafood for China and the Republic of Korea. Moreover, almost all Russian exports of fish products to the ASEAN+3 countries were supplied from the FEFD. Despite the fact that since 2007 the Russian Federation has gradually increased export customs duties on round wood, which had strong demand in the region, during the study period, Russia remained a key supplier for China, and for Japan it was in the top ten. Approximately 25% of Russian exports of wood and articles of wood to the Asia-Pacific were supplied from the Russian Far East

ЛЕСНАЯ ПРОМЫШЛЕННОСТЬ И РЕГИОНАЛЬНОЕ РАЗВИТИЕ СОВЕТСКОГО СЕВЕРА В ГОДЫ ПЕРВЫХ ПЯТИЛЕТОК

The purpose of the article aims at studying the timber industry in the conditions of the formation of regional administrative-territorial and economic structures in the north of the Soviet Union during the first five-year plans. The forestry industry had to ensure the export of forest resources and materials to obtain foreign exchange funds and meet the domestic needs of the country. Plans for the development of the industry and their implementation turned out to be closely related to the administrative and territorial transformations in the 1920s and 1930s, the creation and functioning of economic organizations. In the poorly developed northern and eastern regions of the country, they became a significant trump card in the actions of party-state and economic figures. This led to a number of contradictions and conflicts, which is shown by the examples of Northern Krai and the Igarka district. The potential of the decisions taken turned out to be short-lived — to achieve specific, narrow goals, but at the same time affected large territories. The result of the regional and economic — in relation to the forest industry — policy of the Soviet government was, in addition to the unbundling of the regions, the gradual reorientation of the industry to meet domestic needs. This process was based on the production and transport infrastructure created in the late 1920s — early 1930s for the export of wood. The projects of enterprises designed for meeting the domestic needs of the country, for the most part, have not been implemented.

Russia's Forest Sector After The Years of Reforms: More Laws, but Less Order?

The article discusses the impact of the growing intensity of normative activity in the forestry complex of Russia on the efficiency of the industry. Estimates show that over the last decade and a half, various ministries and departments have adopted at least 400 normative documents regulating various spheres of forest relations. Meanwhile, even without analyzing the statistics, it is clear that such a vigorous normative activity hardly leads to prosperity of the national forestry complex, and certainly does little to help solve the most important problems of forestry, which is especially evident against the background of steadily growing from year to year forest fires and the accompanying damage. We propose a way to reconstruct a long time series volume of logging from official statistics on the export of wood, which was available before 2009. By the example of Siberian regions according to the data for 2005–2020 year regression models panel data are built, providing evidence in favor of the fact that the intensity of rule-making has a negative impact on the amount of timber harvest. It is proposed to fundamentally revise the approaches to the regulation of the forest industry, abandoning the adoption of redundant regulations in favor of government complicity in solving the problems of Russian forests, which have accumulated for many decades.

Regional Trade Adjudication and the Rise of Sustainability Disputes: Korea—Labor Commitments and Ukraine—Wood Export Bans

Regional Trade Adjudication and the Rise of Sustainability Disputes: <i>Korea—Labor Commitments</i> and <i>Ukraine—Wood Export Bans</i>

Neke osobenosti ekonomsko-socijalnog „razvoja“ Bosne i Hercegovine u monarhističkoj Jugoslaviji

For this paper, data (unpublished and published historical sources, relevant literature, official papers, press, periodicals, etc.) were researched and presented in the content, which speaks about the characteristics and some features of economic and social „development“ of Bosnia and Herzegovina during monarchist Yugoslavia. Understanding and knowing this issue can help to understand the disproportion of unequal development of certain parts of the former common state, the attitude of central authorities towards Bosnia and Herzegovina, the causes that led to the disproportion, and monitoring the process of transformation of Bosnian society from agrarian to industrial at the transition from 19th to 20th century in monarchist Yugoslavia, and, especially, during the post - war reconstruction and the first five - year plan. That is, verified data are offered on the basis of which one can follow such a complex process for which it was necessary to consult a significant number of archival documents. Most space was given to comparing economic development and highlighting the social characteristics of Bosnia and Herzegovina with other provinces that were part of monarchist Yugoslavia. The facts show that one of the basic features of the industry of the former Yugoslavia was that there was a big difference in the level of development of certain of its parts. While the branches of light industry, especially food and textile, were relatively developed, some branches almost did not exist, or were very poorly developed: oil production, electrical industry, metallurgy, machinery, energy and others. The difference was evident in the level of development in some provinces of the former Yugoslavia. The western and northern parts (Slovenia, Croatia, Vojvodina) were significantly more industrially developed than the eastern and central parts (Macedonia, Montenegro, Bosnia and Herzegovina). Thus, for example, Slovenia entered Yugoslavia with 1.325 million dinars of capital invested in industry per 1,000 inhabitants, Croatia with Slavonia and Dalmatia with 0.727 million, Serbia with 0.594 million, etc. In relation to the number of inhabitants, the highest industry was built in Slovenia, and the least next to Montenegro in Bosnia and Herzegovina. In the period from 1918. to 1938, a total of 2,193 industrial and processing companies were built in Yugoslavia. Of that, 403 companies in Slovenia or 18.4%, although it accounts for 8.2% of the total population; in Croatia 635 companies or 29%, and its share in the population was 24.1%; in Bosnia and Herzegovina 129 companies or 5.88%, although its share in the total population of Yugoslavia was 16.7%. Another important feature of Yugoslav industry between the two world wars was the technical backwardness of those branches that were more or less developed. Old and worn-out machines were procured from industrialized countries, which were thrown out of the production process there. The third characteristic was the irrational placement of companies away from raw materials, roads and markets. Factories were built regardless of the raw material base, but the profit was mostly taken into account and was the driving force. A further characteristic is related to the fact that in almost all industries it was present, and in the largest and technically most modern companies, the dominant foreign capital. It forced the export of ore, wood and other raw materials and imported finished products at expensive prices. The content presented here provides relevant information on some, significant (key) events that were crucial for answering the research question.