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Explaining the Shifts of International Trade in Pulp and Paper Industry

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Abstract:

The pulp and paper industry is currently facing broad structural changes because of global shifts in demand and supply. These changes have significant impacts on national economies worldwide. In this article, we describe the recent trends in pulp and recovered paper (RP) production and estimate augmented gravity models of bilateral trade for chemical pulp and RP exports with panel data. According to our results, there is some variation in the effects of the traditional gravity model variables between pulp grades and RP. The results imply also that, in comparison with export supply, import demand plays a larger role in determining the volume of exports. Finally, it is evident that Asia, particularly China, is the most important driver of chemical pulp and RP trade: China is hungry for fiber and must import to satisfy its growing needs. Moreover, the speed of China's growth in chemical pulp and RP imports has been driving the increased significance of planted forests in the export of hardwood pulp as well.

Keywords: Hausman-Taylor estimator; bilateral trade; gravity model of international trade; panel data; pulp and paper industry

Document Type: Research Article

DOI: https://doi.org/10.5849/forsci.11-078

Publication date: 2013-04-16

More about this publication?
  • 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.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    2015 Impact Factor: 1.702
    Ranking: 16 of 66 in forestry

    Average time from submission to first decision: 62.5 days*
    June 1, 2016 to Feb. 28, 2017

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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