The Effects of Forest Exploitation ON Wood Import Regulation in Northern Iran

Document Type : Research Paper

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Abstract

Due to increase in demand for wood products and limited domestic sources, wood and wood products import is one of the easiest and most common practices in the international market. Therefore, recognizing factors affecting wood import is important. In this study after collecting data on wood and wood products import, effects of factors such as tariff rate, exchange rate, relative prices, and the amount of harvested wood from the domestic forests and GDP on wood import were investigated with ARDL approach and bound test in 1982-2011periods. The results of the study showed that in short-term and long-term, GDP, harvested domestic wood, tariff rates, and exchange rate and relative prices had a significant effect on wood import. In the long term, tariff on imported wood had a greater effect compare to other variables. In the short and long –run price elasticity of demand for wood import was elastic. ECM estimated coefficient for wood import demand was statistically significant and represented high rate of adjustment. Therefore, it is suggested that decision and policy making in this sector most consider this relationships so as to achieve desired result.

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