A Comparison of the International Competitiveness of Forest Products in Top Exporting Countries Using the Deviation Maximization Method with Increasing Uncertainty in Trading

Abstract

Increased uncertainty in the trade environment has become a reality. However, so far, there is no well-established indicator system to quantify the international competitiveness of forest products in the context of increased uncertainty in the trade environment. Based on expanding the concept of international competitiveness, we constructed an evaluation indicator system of international competitiveness including market performance and competitive advantage, which highlighted market stability and market sustainability indicators. We obtained a comprehensive international competitiveness index of the forest products by Deviation Maximization Method. This study aims to compare and evaluate the international competitiveness of forest products in the top 10 exporting countries using a comprehensive international competitiveness index. The results showed that it is more accurate and comprehensive to use the comprehensive international competitiveness index to evaluate the international competitiveness of forest products, compared to using only a single index. Additionally, the changes to the composite index of international competitiveness went hand-in-hand with the uncertainties the observed countries face, indicating that the indicator system is applicable to the measurement of international competitiveness in an uncertain environment. Large differences exist in the level of international competitiveness of forest products among observed countries. German paper products and wood chips, Chinese wood furniture, wood-based panels and wood products, U.S. logs and wood pulp, and Canadian sawn wood were the most competitive. On the whole, China, Germany and Italy have the highest level of overall international competitiveness in forest products, with Brazil and Poland showing the most significant increases.

Price Competition or Quality Competition? Evidence of Forest Products in Top Exporting Countries

“…This suggests that a 1% increase in the quality of forest products contributes more to an improvement in international competitiveness than a 1% reduction in the price of their products. In summary, the quality of forest products plays a more obvious role in improving the competitiveness of forest products than does the price, which is consistent with the author's viewpoint in another paper, that is, the current improvement in the international competitiveness of forest products is mainly a result of the improvement in product quality [20].…”

“…Su Haiying et al (2020) found that China's exported forest products are in low-value-added, but its participation in global value chains is gradually increasing [1]. Jiang Bo and Dai Yongwu (2023) analyzed the competitiveness of forest products in major countries and found that improved quality enhances the international competitiveness of major forest product [20]. In addition, factors affecting international competitiveness include the green certification of products, level of technology, and consumer preferences in export markets [14].…”

The Status, Trend, and Global Position of China’s Forestry Industry: An Anatomy Based on the Global Value Chain Paradigm

“…In the absence of the availability of inter-country input-output tables, it is natural to use trade data to measure international competitiveness [32]. Noticeably, there are studies using traditional trade statistics to showcase China's competitiveness in some specific products, such as wooden furniture, wood-based panels, and wooden articles [33][34][35]. However, China is also the world's largest importer of log and lumber, and these imported raw materials are major inputs of manufactured wooden products.…”