IDEAS home Printed from https://ideas.repec.org/p/ags/aaae23/365900.html
   My bibliography  Save this paper

Market and non-market determinants of roundwood exports from Cameroon: Implications of global trade on sustainable forest management

Author

Listed:
  • Molua, Ernest L.

Abstract

Africa south of the Sahara is endowed with forest assets which give the continent a comparative advantage in the trading of timber and other forest products. Countries at the 26th COP of the UNFCCC pledged to take steps to secure tropical forest assets against deforestation in countries on the frontiers of the Congo Basin such as Cameroon which are strategically positioned to optimise forest land-use for its global good imperative. However, comprehensive information is absent on the market and non-market drivers of roundwood timber exports. This study examines the economic determinants of roundwood exports from an archetypical African economy of Cameroon, and ascertains whether the reliance on few species for the export market has some implications on the environment and in the overall process of sustainable development. Secondary data is employed covering the period 1960-2020, to estimate an Error Correction Model (ECM) relating timber export value and economic factors. The results reveal that high timber prices may increase the quantity of exports. Similarly, better infrastructure, higher relative demand from Asian countries led by China, increase in area harvested of major species and incomes in importing countries in the European Union (EU) and United States of America (USA) may stimulate increased exports. On the contrary, however, increase in the prices of substitutes, higher exchange rates, higher export taxes, higher domestic consumption levels, and increased illegal exports may have a negative correlation with export receipts. Geographic diversification of roundwood to the EU and non-EU markets is shown to be significantly determined by market access factors. These findings are argued to have profound implications on the management of forest assets for sustainable development.

Suggested Citation

  • Molua, Ernest L., 2023. "Market and non-market determinants of roundwood exports from Cameroon: Implications of global trade on sustainable forest management," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 365900, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae23:365900
    DOI: 10.22004/ag.econ.365900
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/365900/files/278.%20Timber%20from%20Cameroon.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.365900?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Amoah, M. & Becker, G. & Nutto, L., 2009. "Effects of log export ban policy and dynamics of global tropical wood markets on the growth of timber industry in Ghana," Journal of Forest Economics, Elsevier, vol. 15(3), pages 167-185, August.
    2. Eba'a Atyi, Richard & Assembe-Mvondo, Samuel & Lescuyer, Guillaume & Cerutti, Paolo, 2013. "Impacts of international timber procurement policies on Central Africa's forestry sector: The case of Cameroon," Forest Policy and Economics, Elsevier, vol. 32(C), pages 40-48.
    3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    4. Baillie, Richard T & Bollerslev, Tim, 1994. "Cointegration, Fractional Cointegration, and Exchange Rate Dynamics," Journal of Finance, American Finance Association, vol. 49(2), pages 737-745, June.
    5. Edward B. Barbier, 2000. "Biodiversity, trade and international agreements," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 27(1/2), pages 55-74, February.
    6. Torjus Bolkesjø & Joseph Buongiorno & Birger Solberg, 2010. "Joint production and substitution in timber supply: a panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 671-680.
    7. Tromborg, Erik & Buongiorno, Joseph & Solberg, Birger, 2000. "The global timber market: implications of changes in economic growth, timber supply, and technological trends," Forest Policy and Economics, Elsevier, vol. 1(1), pages 53-69, May.
    8. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    9. Fahim Al-Marhubi, 2000. "Export diversification and growth: an empirical investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 7(9), pages 559-562.
    10. shepherd, Ben, 2010. "Geographical Diversification of Developing Country Exports," World Development, Elsevier, vol. 38(9), pages 1217-1228, September.
    11. Sedjo, Roger & Simpson, R. David, 1999. "Tariff Liberalization, Wood Trade Flows, and Global Forests," RFF Working Paper Series dp-00-05, Resources for the Future.
    12. Sedjo, Roger A. & Simpson, R. David, 1999. "Tariff Liberalization, Wood Trade Flows, and Global Forests," Discussion Papers 10557, Resources for the Future.
    13. Lundmark, Robert, 2010. "European trade in forest products and fuels," Journal of Forest Economics, Elsevier, vol. 16(3), pages 235-251, August.
    14. Assaf Almog & Rhys Bird & Diego Garlaschelli, 2015. "Enhanced Gravity Model of trade: reconciling macroeconomic and network models," Papers 1506.00348, arXiv.org, revised Feb 2019.
    15. Tumaneng-Diete, T. & Ferguson, Ian S. & MacLaren, Donald, 2005. "Log export restrictions and trade policies in the Philippines: bane or blessing to sustainable forest management?," Forest Policy and Economics, Elsevier, vol. 7(2), pages 187-198, February.
    16. Waheed, Muhammad & Alam, Tasneem & Ghauri, Saghir Pervaiz, 2006. "Structural breaks and unit root: evidence from Pakistani macroeconomic time series," MPRA Paper 1797, University Library of Munich, Germany.
    17. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aggarwal, Raj & Mougoue, Mbodja, 1998. "Common Stochastic Trends among Asian Currencies: Evidence for Japan, ASEANs, and the Asian Tigers," Review of Quantitative Finance and Accounting, Springer, vol. 10(2), pages 193-206, March.
    2. Bang Nam Jeon & Euiseong Lee, 2002. "Foreign exchange market efficiency, cointegration, and policy coordination," Applied Economics Letters, Taylor & Francis Journals, vol. 9(1), pages 61-68.
    3. Kühl, Michael, 2007. "Cointegration in the foreign exchange market and market efficiency since the introduction of the Euro: Evidence based on bivariate cointegration analyses," University of Göttingen Working Papers in Economics 68, University of Goettingen, Department of Economics.
    4. Aggarwal, Raj & Simmons, Walter, 2008. "Common stocastic trends among Caribbean currencies: Evidence from Guyana, Jamaica, and Trinidad and Tobago," Journal of Economics and Business, Elsevier, vol. 60(3), pages 277-289.
    5. Jose A. Lopez, 1996. "Exchange rate cointegration across central bank regime shifts," Research Paper 9602, Federal Reserve Bank of New York.
    6. Jeon, Bang Nam & Seo, Byeongseon, 2003. "The impact of the Asian financial crisis on foreign exchange market efficiency: The case of East Asian countries," Pacific-Basin Finance Journal, Elsevier, vol. 11(4), pages 509-525, September.
    7. John Barkoulas & Christopher Baum, 1997. "A re-examination of the fragility of evidence from cointegration-based tests of foreign exchange market efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 7(6), pages 635-643.
    8. Aggarwal, Raj & Mougoue, Mbodja, 1996. "Cointegration among Asian currencies: Evidence of the increasing influence of the Japanese yen," Japan and the World Economy, Elsevier, vol. 8(3), pages 291-308, September.
    9. Marie-Josée Godbout & Simon van Norden, 1997. "Reconsidering Cointegration in International Finance: Three Case Studies of Size Distortion in Finite Samples," Staff Working Papers 97-1, Bank of Canada.
    10. repec:got:cegedp:76 is not listed on IDEAS
    11. Madura, J. & Wiley, M. K. & Zarruk, E. R., 1998. "Cointegration of term structure premiums across countries," Journal of Multinational Financial Management, Elsevier, vol. 8(4), pages 393-412, November.
    12. Barkoulas, John T. & Barilla, Anthony G. & Wells, William, 2016. "Long-memory exchange rate dynamics in the euro era," Chaos, Solitons & Fractals, Elsevier, vol. 86(C), pages 92-100.
    13. Shi-Miin Liu & Chih-Hsien Chou, 2003. "Parities and Spread Trading in Gold and Silver Markets: A Fractional Cointegration Analysis," Applied Financial Economics, Taylor & Francis Journals, vol. 13(12), pages 899-911.
    14. Jimy Ferrer Carbonell & Roberto Escalante Semerena, 2014. "Demanda de gasolina en la zona metropolitana del Valle de México: análisis empírico de la reducción del subsidio," Revista de Economía del Rosario, Universidad del Rosario.
    15. Kühl, Michael, 2010. "Bivariate cointegration of major exchange rates, cross-market efficiency and the introduction of the Euro," Journal of Economics and Business, Elsevier, vol. 62(1), pages 1-19, January.
    16. Arip, Mohammad Affendy & Yee, Lau Sim & Abdul Karim, Bakri, 2010. "Export Diversification and Economic Growth in Malaysia," MPRA Paper 20588, University Library of Munich, Germany.
    17. Michael KUEHL, 2008. "Strong Comovements of Exchange Rates: Theoretical and Empirical Cases when Currencies Become the Same Asset," EcoMod2008 23800071, EcoMod.
    18. repec:got:cegedp:68 is not listed on IDEAS
    19. Luintel, K. B. & Paudyal, K., 1998. "Common stochastic trends between forward and spot exchange rates," Journal of International Money and Finance, Elsevier, vol. 17(2), pages 279-297, April.
    20. Munehisa Kasuya & Kozo Ueda, 2000. "Testing the Purchasing Power Parity Hypothesis: Re-examination by Additional Variables, Tests with Known Cointegrating Vectors, Monte Carlo Critical Values, and Fractional Cointegration," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    21. Macide Cicek, 2014. "A Cointegration Test for Turkish Foreign Exchange Market Efficiency," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(4), pages 451-471, April.
    22. Ramya Rajajagadeesan Aroul & Peggy E. Swanson, 2018. "Linkages Between the Foreign Exchange Markets of BRIC Countries—Brazil, Russia, India and China—and the USA," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(3), pages 333-353, December.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaae23:365900. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.