To examine the effects of global economic integration, public policy, and other factors on US softwood lumber trade, a demand and supply system for both exports and imports is estimated with panel data sets. We find that the combined impact of trading price and exchange rate before 2003 has made foreign lumber products much cheaper than those manufactured domestically. Furthermore, domestic economic conditions and production capacity strongly affect the exports and imports of both the United States and its trade partners. Also, the US federal harvest reduction policy and the Asian financial crisis influenced both export and import markets. All of these suggest the need for more integrated market analysis and strategic business thinking.
Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.