The Impact of International Trade of Raw Wood to the Economic Growth of Forest-Based Sectors in the Czech and Slovak Republics

Andrea Sujová, Jakub Michal, Václav Kupčák, Roman Dudík

Abstract


International trade metrics can indicate the competitive advantage of the industry in international markets. However, the export of the raw materials utilized by the industry can influence company and industry performance negatively. This article assessed the effectiveness of the international trade with raw wood and its impact on the economic results of the industry. A system of indicators was formed to measure the international trade impact on the industry performance, and the following hypothesis was established: increasing the international trade with raw wood influences the economic growth of the industry negatively. The results confirmed the hypothesis, showing that the growth of export volume and also import of raw wood decreased industry performance during the monitored period. In the forestry sector, the more significant influence appeared in revenues, which influenced the profit most in the timber industry. Other findings demonstrated that the international wood trade in the Czech Republic and the Slovak Republic does not create a comparative advantage, but decreases competitiveness of the forestry sector.

Keywords


Economic growth; Foreign trade; Forestry sector; Raw wood

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Welcome to BioResources! This online, peer-reviewed journal is devoted to the science and engineering of biomaterials and chemicals from lignocellulosic sources for new end uses and new capabilities. The editors of BioResources would be very happy to assist you during the process of submitting or reviewing articles. Please note that logging in is required in order to submit or review articles. Martin A. Hubbe, (919) 513-3022, hubbe@ncsu.edu; Lucian A. Lucia, (919) 515-7707, lucian.lucia@gmail.com URLs: bioresourcesjournal.com; http://ncsu.edu/bioresources ISSN: 1930-2126