Impact of Rational Use of Forest Resources in Central African Republic on Its Economy

Befio Paulin Epaphrodite ()

Academic Journal of Economic Studies, 2018, vol. 4, issue 4, 64-70

Abstract: Given that the economy of Central African Republic as well as other tropical countries is strongly based on the exploitation of their forests, and also CAR’s forests have been exploited since colonial period until now but the economic contributions remain below expectations, in this context this work is looking forwards to analyze what can happen to this economy if some policies towards the rational use of forests could be implemented. This study is the extension of the previous one we did about the importance of wood production in the Central African Republic’s economy. In terms of this analysis, first we use multiple-regressions (static model) that help us to get the break point through Chow test and then we use structure change analysis in order to analyze the impact of rational use of forest resources due to changes that happened in the Central African Republic’s forest department from 1989 on its economy. The analysis of the rational use of forests through the structural change resulting from the Chow breaking point test shows the existence of break point in the wood production trend. The validity of this test also attests the existence of a structural change in the way forest resources are managed and lead to a change in the effect of wood products on GDP positively and significant.

Keywords: Central African Republic; economy; economic resources (search for similar items in EconPapers)
JEL-codes: O5 O55 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:khe:scajes:v:4:y:2018:i:4:p:64-70

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