Metla Project 3320

The Economics of Roundwood Import

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Duration: 2001-2003   Keywords: roundwood import, roundwood market, timber procurement projections

Objectives

The objective of the research is to analyse the net effects of roundwood import on the domestic roundwood market in Finland and economic and welfare effects of this international roundwood trade in Finland and in North- West Russia. Theoretical analyses on the economic effects of roundwood import constitute the first research task. Competitive and complementary import of roundwood are analysed separately by using short- run equilibrium analysis. The empirical demand analysis of roundwood import in Finland during 1990- 2000 is the second research task. The short run reactions of import wrt to the changes in import prices, domestic prices of roundwood, exchange rate and export prices of forest products estimated. Alternative growth scenarios in the industrial use of imported roundwood are constructed and the demand of imported and domestic roundwood among the timber species are calculated both on the basis of predetermined structural changes of the domestic roundwood market and as the solutions of short run market equilibrium. The direct and indirect economic effects from the use of imported roundwood are calculated by input- output analysis to evaluate the net economic effects form import on the net value added and employment in forest sector. Input-output analyses are calculated on macroeconomic level in the first stage and on regional level in the second stage.

Project leader: Ollonqvist, Pekka
The Finnish Forest Research Institute, Joensuu Research Unit, PL 68, 80101 Joensuu
Phone: +358 10 211 3050 Telefax: +358 10 211 3251
E-mail: pekka.ollonqvist@metla.fi

Other researchers: Holopainen, Päivi (2002-03), Mutanen, Antti, JO (2002-03), Toppinen, Anne, JO (2002-03), Toropainen, Mikko, JO (2001-04)


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Updated 30.12.2006
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