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The effects of globalization on the imports of wood products in Iran

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  • Khosravi, Sheyda
  • Maleknia, Rahim
  • Adeli, Kamran
  • Mohseni, Reza
  • Hodges, Donald G.

Abstract

Globalization has not affected Iran substantially, even though it possesses the largest economy outside the World Trade Organization (WTO). In the present study, the level of international trade (LIT) and intra-industry trade (IIT) were considered as two globalization indices. Adding the two indices to the import demand functions of three categories of wood products (wood raw materials, semi-finished wood products, and finished wood products), the effect of the globalization of various wood products sectors on imports of related wood products was evaluated. The findings reveal significant relationships between the import of wood as raw material and the globalization indices of semi-finished wood products and finished wood products. The import of finished wood products was positively correlated with the IIT of semi-finished wood products. However, globalization indices had no impact on semi-finished wood products imports. Other results indicate that the three categories of wood products were significantly different in terms of the mean of globalization indices (p < 0.05). Compared to the other categories, finished wood products had the highest LIT and lowest IIT, suggesting a large amount of import-based trade of the given products relative to domestic production in Iran. Overall, semi-finished wood products and finished wood products were placed in a higher stage within the LIT–IIT framework, implying that these sectors in Iran are more globalized.

Suggested Citation

  • Khosravi, Sheyda & Maleknia, Rahim & Adeli, Kamran & Mohseni, Reza & Hodges, Donald G., 2018. "The effects of globalization on the imports of wood products in Iran," Journal of Forest Economics, Elsevier, vol. 32(C), pages 116-122.
    • Handle: RePEc:eee:foreco:v:32:y:2018:i:c:p:116-122
    DOI: 10.1016/j.jfe.2018.04.004
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    References listed on IDEAS

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    1. Mona V Makhija & Kwangsoo Kim & Sandra D Williamson, 1997. "Measuring Globalization of Industries Using a National Industry Approach: Empirical Evidence Across Five Countries and over Time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 679-710, December.
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    7. Bolkesjø, Torjus F. & Buongiorno, Joseph, 2006. "Short- and long-run exchange rate effects on forest product trade: Evidence from panel data," Journal of Forest Economics, Elsevier, vol. 11(4), pages 205-221, January.
    8. Mohammadi Limaei, Soleiman & Heybatian, Roghayeh & Heshmatol Vaezin, Seyed Mahdi & Torkman, Javad, 2011. "Wood import and export and its relation to major macroeconomics variables in Iran," Forest Policy and Economics, Elsevier, vol. 13(4), pages 303-307, April.
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    Cited by:

    1. Adewuyi, Adeolu & Ogebe, Joseph O. & Oshota, Sebil, 2021. "The role of exchange rate and relative import price on sawnwood import demand in Africa: Evidence from modified heterogeneous panel data methods," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).

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    Keywords

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    JEL classification:

    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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