The tropical timber industry in Gabon: a forward linkages approach to industrialisation
AbstractThe breadth and depth of forward linkages in the tropical timber industry of Gabon is a result of three inter-acting drivers: the nature of final markets, ownership of production, and sector-specific policy. The Forestry Code set explicit domestic processing targets built on the trajectory of French processors. Still, while this is theoretically in line with European market demands for wood products, the forced beneficiation resulted in Chinese, Malaysian, and Gabonese producers, whose prime activity is the exploitation of logs for processing industries in China, to limit their participation in forward linkages to the sawnwood sub-sector, characterised by low entry barriers and negative producer margins. Gabon's comparative advantage lies in the exploitation of its natural resource tropical timber for export markets. Logging is also a 'superior' technology allowing the appropriation of resource rents. These are largely diluted in processing due to production cost penalties such as high reservation wages, inadequate infrastructure, lack of skills, and the political economy of Gabon. The conflict between the envisaged forward linkages approach to industrialisation (in light of falling oil reserves), industry actors' market focuses, motivations, and capabilities, as well as conclusions drawn about comparative advantages and linkage-blockages, has significant consequences for industrial development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37976.
Date of creation: Mar 2011
Date of revision:
emerging economies; China; Gabon; timber sector; global value chains; trade; industrialization; resource-based growth;
Find related papers by JEL classification:
- F00 - International Economics - - General - - - General
- L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
- O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
- L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- A10 - General Economics and Teaching - - General Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-04-17 (Agricultural Economics)
- NEP-ALL-2012-04-17 (All new papers)
- NEP-SEA-2012-04-17 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Auty, Richard M., 2001. "The political economy of resource-driven growth," European Economic Review, Elsevier, vol. 45(4-6), pages 839-846, May.
- Davis, Graham A., 1995. "Learning to love the Dutch disease: Evidence from the mineral economies," World Development, Elsevier, vol. 23(10), pages 1765-1779, October.
- Kaplinsky, Raphael & Terheggen, Anne & Tijaja, Julia, 2010. "What happens when the market shifts to China ? the Gabon timber and Thai cassava value chains," Policy Research Working Paper Series 5206, The World Bank.
- Szirmai, Adam & Verspagen, Bart, 2011. "Manufacturing and Economic Growth in Developing Countries, 1950-2005," MERIT Working Papers 069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Kaplinsky, Raphael & Terheggen, Anne & Tijaja, Julia, 2011. "China as a Final Market: The Gabon Timber and Thai Cassava Value Chains," World Development, Elsevier, vol. 39(7), pages 1177-1190, July.
- Owens, Trudy & Wood, Adrian, 1997. "Export-oriented industrialization through primary processing?," World Development, Elsevier, vol. 25(9), pages 1453-1470, September.
- Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
- Stijns, Jean-Philippe, 2006.
"Natural resource abundance and human capital accumulation,"
Elsevier, vol. 34(6), pages 1060-1083, June.
- Jean-Philippe C. Stijns, 2001. "Natural Resource Abundance and Human Capital Accumulation," Development and Comp Systems 0112001, EconWPA.
- Stijns, Jean-Philippe C., 2001. "Natural Resource Abundance and Human Capital Accumulation," Conference Papers 25128, University of California, Berkeley, Department of Agricultural and Resource Economics.
- Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban an Efficient Instrument for Economic Development and Environmental Protection? The Case of Indonesia," Asian Economic Papers, MIT Press, vol. 5(2), pages 75-104, June.
- Wood, Adrian & Mayer, Jorg, 2001. "Africa's Export Structure in a Comparative Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 25(3), pages 369-94, May.
- Brunnschweiler, Christa N. & Bulte, Erwin H., 2008.
"The resource curse revisited and revised: A tale of paradoxes and red herrings,"
Journal of Environmental Economics and Management,
Elsevier, vol. 55(3), pages 248-264, May.
- Christa N. Brunnschweiler & Erwin H. Bulte, 2006. "The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings," CER-ETH Economics working paper series 06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- David de Ferranti & Guillermo E. Perry & Daniel Lederman & William E. Maloney, 2002. "From Natural Resources to the Knowledge Economy : Trade and Job Quality," World Bank Publications, The World Bank, number 14040, October.
- Gavin Bridge, 2008. "Global production networks and the extractive sector: governing resource-based development," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 389-419, May.
- Wenbin Huang & Andreas Wilkes & Xiufang Sun & Anne Terheggen, 2013. "Who is importing forest products from Africa to China? An analysis of implications for initiatives to enhance legality and sustainability," Environment, Development and Sustainability, Springer, vol. 15(2), pages 339-354, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.