Dynamics of Wood Pulp Production: Evidence from OECD Countries
2017 (English)In: Forests, ISSN 1999-4907, E-ISSN 1999-4907, Vol. 8, no 4, 170-180 p., 107Article in journal (Refereed) Published
This paper investigates whether shocks to pulp for paper production for 17 Organisation for Economic Co-Operation and Development (OECD) members over the period 1980–2012 are transitory or permanent. A variety of univariate and panel data unit root tests are employed. The presence of structural breaks is taken into account when performing those tests. Based on the Narayan-Popp univariate unit root test, wood production series for approximately 64.71% of countries is found to follow a non-stationary process. However, univariate unit root tests tend to have low power when the time span is relatively short. Consequently, three generations of panel unit root tests are considered. Cross-sectional dependence is detected. The first generation of unit roots do not effectively control for cross-sectional dependence, while the second and third generations do. The third generation accounts mainly for cross-sectional co-integration. As a confirmatory analysis, both unit root tests that tests for the null of non-stationarity and stationarity are considered. Most of the panel unit root tests point towards a non-stationary process. Hence, while these shocks can be transmitted to other economic sectors, past behaviours of wood production cannot be used for forecasting purposes. Forest conservation policies can have a permanent impact on pulp for paper production.
Place, publisher, year, edition, pages
2017. Vol. 8, no 4, 170-180 p., 107
Research subject Economics
IdentifiersURN: urn:nbn:se:ltu:diva-62931DOI: 10.3390/f8040107ScopusID: 2-s2.0-85017395242OAI: oai:DiVA.org:ltu-62931DiVA: diva2:1087440
Validerad; 2017; Nivå 2; 2017-04-18 (rokbeg)2017-04-072017-04-072017-04-28Bibliographically approved