Dynamics In Wood Industry In Slovenia

Jože Kocjančič and Štefan Bojnec

Economic Research-Ekonomska Istraživanja, 2011, vol. 24, issue 1, 68-81

Abstract: This paper investigates the dynamics of large wood industry enterprises on the dynamics of micro and small wood industry enterprises using firm-level survey data and time-series data. In addition, entry and exit of micro and small wood industry enterprises is explained by factors of demand, value-added, and profitability of capital. The empirical results show relatively modest impact of the dynamics of large enterprises on the dynamics of micro and small enterprises in the wood industry. The rate of value-added per employee and the rate of capital profitability are significantly associated with investments, particularly investments into new technological equipment. Easier access to financial means for micro and small enterprises at acceptable guarantees and reduction in costs of financing of capital are among possible measures to improve wood industry enterprise performance and entry into foreign markets as well as to efficiently reduce imports of wood raw materials and low value-added wood semi-products and to increase exports of higher value-added products and services.

Date: 2011
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DOI: 10.1080/1331677X.2011.11517445

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