Credit Availability: A Possible Barrier to Growth for the Alaska Forest Products Industry?
Authors: Donovan, Geoffrey1; Hesseln, Hayley2; Garth, John3
Source: Western Journal of Applied Forestry, Volume 20, Number 3, July 2005 , pp. 177-183(7)
Publisher: Society of American Foresters
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Abstract:
Historically, the Alaska forest products industry has been driven by pulp production and the export of logs and cants primarily to Japan. Economic stagnation in Japan, the closure of Alaska's two pulp mills, harvest restrictions, and increased competition have severely impacted the industry. To survive, the industry must make significant investments in capital equipment, which requires adequate access to business credit. This article examines whether credit availability is a barrier to the future growth of the industry. Data were collected through a mail survey in spring 2002. Our results show that credit rationing is prevalent throughout the industry. Lack of experience and low collateral are identified as the two main causes. An educational program and loan guarantees are offered as policy prescriptions to help alleviate credit rationing. West. J. Appl. For. 20(3):177–183.Keywords: Alaska forest products industry; credit rationing; economics; policy; environmental management; forest; forest management; forest resources; forestry; forestry research; forestry science; natural resources; natural resource management
Document Type: Regular article
Affiliations: 1: Pacific Northwest Research Station Portland OR 97205 Phone: (503) 808-2043;, Fax: (503) 808-2033, Email: gdonovan@fs.fed.us 2: Department of Agricultural Economics University of Saskatchewan Saskatoon Saskatchewan Canada S7N 5A8 3: CINTRAFOR University of Washington Seattle WA
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