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    Author(s): Joseph Buongiorno; Craig Johnston; Shushuai Zhu
    Date: 2017
    Source: Forest Policy and Economics
    Publication Series: Scientific Journal (JRNL)
    Station: Southern Research Station
    PDF: View PDF  (515.0 KB)

    Description

    The importance of international trade for the welfare of actors in the forest sector was estimated by comparing the current state of the world with a world in pure autarky with zero imports and exports of roundwood and manufactured wood products. The analysis was done with a comparative statics application of the Global Forest Products Model. The model was first calibrated in replicate observations in the base year 2013, and then solved under autarky conditions. The results showed much variation in the effects of international trade on production, consumption, and prices across countries and sub sectors. Globally international trade did have a positive effect on the economic welfare of the sector. This was due mostly to the positive effect on the surplus of consumers, and to a lesser extent on the increase in value added in forest industries. But value added profited manufacturers in developed countries much more that in developing. Furthermore, while wood producers in developed countries increased their profits with trade, those in developing countries incurred heavy losses that negated any incentive to invest in forest conservation, management and new plantations.

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    Citation

    Buongiorno, Joseph; Johnston, Craig; Zhu, Shushuai. 2017.An assessment of gains and losses from international trade in the forest sector. Forest Policy and Economics. 80: 209-217. 9 p. https://doi.org/10.1016/j.forpol.2017.04.004.

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    Keywords

    forest products, International trade, Protectionism, Autarky, Free Trade, GFPM

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https://www.fs.usda.gov/treesearch/pubs/54387