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The economic contribution of the world's forest sector

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  • Li, Yanshu
  • Mei, Bin
  • Linhares-Juvenal, Thaís

Abstract

This study estimated economic contribution of the global forest sector to national economies by calculating value added, employment, and labor income. Input-output models were developed for 58 countries using 2011 IMPLAN model and data to estimate the direct, indirect, and induced effects of the major forest subsectors. The jobs generated in domestic sectors by the forest sector through backward linkage exceeded the number of direct jobs in the forest sector itself. Total indirect and induced value added generated in other sectors by the forest sector also exceed the direct value added produced in the forest sector. Comparison of economic multipliers showed that the ripple effects varied by forest subsector and the wood-based processing subsectors generally had relative higher multiplier effects than the forestry and logging subsector. An econometric model was developed to estimate economic multipliers for 111 countries without IMPLAN data and the economic contribution of the forest sectors to their national economies was estimated based on the derived multipliers and national statistics on industry output. The global forest sector collectively directly employed more than 18.21 million people and supported more than 45.15 million jobs through direct, indirect and induced impacts. The global forest sector had a direct contribution of more than $539 billion and a total contribution of more than $1298 billion to the world GDP.

Suggested Citation

  • Li, Yanshu & Mei, Bin & Linhares-Juvenal, Thaís, 2019. "The economic contribution of the world's forest sector," Forest Policy and Economics, Elsevier, vol. 100(C), pages 236-253.
    • Handle: RePEc:eee:forpol:v:100:y:2019:i:c:p:236-253
    DOI: 10.1016/j.forpol.2019.01.004
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    2. Nicolas Robert & Ragnar Jonsson & Rafał Chudy & Andrea Camia, 2020. "The EU Bioeconomy: Supporting an Employment Shift Downstream in the Wood-Based Value Chains?," Sustainability, MDPI, vol. 12(3), pages 1-14, January.
    3. Francisca Ruiz-Gozalvo & Susana Martín-Fernández & Roberto Garfias-Salinas, 2019. "Characterization of Small Forest Landowners as a Basis for Sustainable Forestry Management in the Libertador General Bernardo O’Higgins Region, Chile," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    4. Jaime de Pablo Valenciano & Juan Milán-García & Juan Uribe-Toril & José Luis Ruiz-Real, 2023. "The Fruit and Vegetable Sector in Andalusia (Spain): Key in Terms of Linkages and the Effect of Economic Multipliers?," SAGE Open, , vol. 13(3), pages 21582440231, July.
    5. Furszyfer Del Rio, Dylan D. & Sovacool, Benjamin K. & Griffiths, Steve & Bazilian, Morgan & Kim, Jinsoo & Foley, Aoife M. & Rooney, David, 2022. "Decarbonizing the pulp and paper industry: A critical and systematic review of sociotechnical developments and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    6. Agyeman, Domena A. & Ochuodho, Thomas O., 2021. "Factor endowment and structural change in Kentucky forest industry," Forest Policy and Economics, Elsevier, vol. 131(C).

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