Productivity, resource endowment and trade performance of the wood product sector

Bertrand Koebel, Anne-Laure Levet, Phu Nguyen-Van, Indradev Purohoo and Ludovic Guinard

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: This paper analyzes the determinants of international trade of wood products, considering three main groups: woodworking products, pulp and paper and wooden furniture. We extend the Heckscher-Ohlin-Vanek (HOV) framework in order to take into account the forest resource endowment as well as industrial performance factors. Empirical tests are based on data on European countries between 1995 and 2007. The HOV hypothesis is partially confirmed in that the forest resource endowment is a significant determinant for explaining differences in net trade of two products (pulp and paper and furniture) but not for woodworking products. In addition, empirical tests also show the limits of the HOV model for explaining international trade of wood products. Indeed, factors reflecting industrial performance of wood sectors, including total factor productivity and average labor cost, have a significant role in determining differences in net trade of wood products.

Keywords: Heckscher-Ohlin-Vanek hypothesis; international trade; wood products, panel data. (search for similar items in EconPapers)
JEL-codes: F10 L60 Q23 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cse, nep-eff and nep-int
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Related works:
Journal Article: Productivity, resource endowment and trade performance of the wood product sector (2016)
Working Paper: Productivity, resource endowment and trade performance of the wood product sector (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2015-26

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