The economic contribution of the world's forest sector

Yanshu Li, Bin Mei and Thaís Linhares-Juvenal

Forest Policy and Economics, 2019, vol. 100, issue C, 236-253

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.

Keywords: IMPLAN; Macroeconomics; Panel data; SAM multiplier (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:100:y:2019:i:c:p:236-253

DOI: 10.1016/j.forpol.2019.01.004

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