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Decomposition analysis of changes in value added. A case study of the sawmilling and wood processing industry in Germany

Listed author(s):
  • Rosenkranz, Lydia
  • Seintsch, Björn
  • Dieter, Matthias
Registered author(s):

    It is basically assumed that a higher level of domestic wood harvesting leads to a higher level of domestic wood use and thus to an increase of value added in the wood processing industry. However, in the past years, the wood input increased in some wood processing sectors in Germany whereas their value added decreased. Against this background we aimed to decompose changes in input and output in order to isolate the effects of value added and to determine the role of wood as intermediate input of the sawmilling and wood processing industries. We regarded the years 2006 compared to 2002 and 2010 compared to 2006. Based on statistical data, a decomposition method was developed that determines changes in the product price, the intermediate input price, the growth and the structural effect. Furthermore, a special focus was set on the impacts of price and quantity changes of the input of wood-based products. We found out, that the growth effect is connected to the wood input in the sawmilling industry in the considered years. Also, it became apparent that a higher input of wood and wood products does not automatically lead to an increase in value added.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1389934115000052
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    Article provided by Elsevier in its journal Forest Policy and Economics.

    Volume (Year): 54 (2015)
    Issue (Month): C ()
    Pages: 36-50

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    Handle: RePEc:eee:forpol:v:54:y:2015:i:c:p:36-50
    DOI: 10.1016/j.forpol.2015.01.004
    Contact details of provider: Web page: http://www.elsevier.com/locate/forpol

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    1. Hans-Werner Sinn, 2005. "Basar-Ökonomie Deutschland - Exportweltmeister oder Schusslicht?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(06), pages 03-42, March.
    2. Ang, B.W., 1995. "Decomposition methodology in industrial energy demand analysis," Energy, Elsevier, vol. 20(11), pages 1081-1095.
    3. Seintsch, Björn, 2013. "Cluster Forst und Holz nach neuer Wirtschaftszweigklassifikation: Tabellen für das Bundesgebiet und die Länder 2000 bis 2011," Thünen Working Papers 5, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    4. Stanislav Ivanov, 2010. "Decomposition of economic growth in Bulgaria by industry," Journal of Economic Studies, Emerald Group Publishing, vol. 37(2), pages 219-227, May.
    5. Seintsch, Björn & Weimar, Holger, 2013. "Holzbilanzen 2010 bis 2012 für die Bundesrepublik Deutschland," Thünen Working Papers 9, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    6. Milana, Carlo, 1988. "Constant-market-shares analysis and index number theory," European Journal of Political Economy, Elsevier, vol. 4(4), pages 453-478.
    7. C. O’Donnell, 2012. "An aggregate quantity framework for measuring and decomposing productivity change," Journal of Productivity Analysis, Springer, vol. 38(3), pages 255-272, December.
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