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Measuring the competitiveness of Canadian pulp and paper in the US market reveals needs for more research

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Abstract:

This paper studies substitution between main categories of imported pulp and paper products and between imported and domestic pulp and paper products in the US market. A restricted translog subcost function approach was employed to derive the elasticity of substitution. The results suggest that Canadian pulp and paper products are competitive and have maintained their competitiveness in the US market, and therefore, the challenges faced by the Canadian pulp and paper industry are not because of the loss of its product competitiveness but are due to other reasons such as declining demand for paper products in the United States. It seems that if the Canadian pulp and paper industry wants to retain its dominant position in the world market place, it will have to create global reach and develop new markets.

Cet article s’intéresse à la substitution entre les principales catégories de produits de pâtes et papiers et entre les produits de pâtes et papiers importés et domestiques sur le marché américain. Une approche basée sur une fonction translog restreinte de sous-coût a été utilisée pour déterminer l’élasticité de substitution. Les résultats indiquent que les produits de pâtes et papiers canadiens sont compétitifs, qu’ils ont maintenu leur compétitivité sur le marché américain et que les défis rencontrés par l’industrie canadienne des pâtes et papiers ne sont pas dus à une perte de compétitivité de ses produits mais plutôt à d’autres facteurs tels que la diminution de la demande pour les produits du papier aux États-Unis. Il semble que si l’industrie canadienne des pâtes et papiers désire maintenir sa position dominante sur le marché mondial, elle devra adopter une perspective globale et développer de nouveaux marchés.

Document Type: Research Article

Publication date: December 1, 2008

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  • Published since 1971, this monthly journal features articles, reviews, notes and commentaries on all aspects of forest science, including biometrics and mensuration, conservation, disturbance, ecology, economics, entomology, fire, genetics, management, operations, pathology, physiology, policy, remote sensing, social science, soil, silviculture, wildlife and wood science, contributed by internationally respected scientists. It also publishes special issues dedicated to a topic of current interest.
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