Impact of Globalization and Policy Change on United States Softwood Lumber Trade

Authors: Xiang, Qing; Yin, Runsheng

Source: Forest Science, Volume 52, Number 4, August 2006 , pp. 381-389(9)

Publisher: Society of American Foresters

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Abstract:

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.

Keywords: Softwood lumber trade; globalization; federal harvest reductions; Asian financial crisis; panel data set; demand and supply equations

Document Type: Research article

Affiliations: 1: Qing Xiang, Department of Forestry, Michigan State University,126 Natural Resources Building, East Lansing, MI 48824—Phone: (517) 353-5103; xiangqin@msu.edu. Runsheng Yin, Department of Forestry, Michigan State University, 126 Natural Resources Building, East Lansing, MI 48842—(517) 432-3352; yinr@msu.edu., Fax: (517) 432-1143

Publication date: 2006-08-01

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