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IMPACT OF ECONOMIC CRISIS ON WOOD MARKETS (CONSUMPTION, PRODUCTION AND TRADE)

Maria-Loredana Popescu () and Antoniu Predescu ()
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Maria-Loredana Popescu: Spiru Haret University, Romania
Antoniu Predescu: Spiru Haret University, Romania

The USV Annals of Economics and Public Administration, 2013, vol. 13, issue 2(18), 86-90

Abstract: Global economic crisis represents one of the causes why wood consumption is increasing especially in countries less developed. In countries where governments couldn’t improve the quality of life and unemployment rate is higher, local communities devastate a lot of forestry. In last thirty years we saw a deforestation process at the global level related to land being converted to other uses: agriculture and urbanization, which represent a positive trend of a negative use. The statistics reveal, on one hand, an increasing demand for paper, paper products, wood products and wood energy. So this point is important to analyze: where wood came from and where it is going as either raw material or processed goods? For undeveloped countries, like Romania, it is easy to export primary wood product without evaluating the consequences. On the other hand, developed countries like Sweden export value added products which brig them higher value and profits and require greater manufacturing and marketing skills (case IKEA). For this, government policy could introduce trade barriers to decrease log consumption (like export taxes) and simultaneously support furniture production and trade (e.g. export).

Date: 2013
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