Competitiveness in the global forest industry sector: an empirical study with special emphasis on Germany

Abstract

The objective of the presented study is to analyze the competitiveness of the German forest industry sector against the background of the international timber markets. The analysis is conducted based on global bilateral trade data in monetary terms. Timber commodities are grouped according to twelve commodity classes; each class is clearly attributed to one of the three processing levels raw wood, semi-finished and finished wood products. After an introductory description of the structure and development of the global timber market, two result-oriented competitiveness indicators have been applied: the revealed comparative advantage (RCA), which indicates whether a country is specialized in a specific sector-the RCA analysis has been conducted by means of the two consecutive indices Balassa index (BI) and Aquino index (AI)-and in addition the constant market share (CMS) analysis, which disaggregates the overall export growth of a country into four different effects: (1) the world growth effect, (2) the commodity-composition effect, (3) the market-distribution effect and (4) a residual, which usually is interpreted as the competitiveness effect. Depending on the chosen indicator, results are given for 21 and 25 leading countries (RCA and CMS, respectively). The highest BI values are shown by Russia for raw wood (10.4), by Finland for semi finished wood products (11.3) and by Poland for finished wood products (4.7). The AI shows that countries which are specialized in timber commodity exports mostly are significant timber importers, as well. This is an indication of their integration in an intra-industry trade. Germany only has a BI value somewhat greater than 1 for finished wood products. This can be seen as an indication of merely an average competitiveness position in global timber markets. The CMS analysis delivers two key results: most of the leading timber exporters in absolute terms show only low export growth rates and vice versa. Furthermore, a strong positive relationship can be identified between a country's timber export growth rate and its competitiveness effect. Most of the Eastern European and many Asian and Latin American countries show this pattern, as they have high growth rates and high positive competitiveness effects. Germany's export growth can be attributed much more to the overall world growth in timber markets than to its forest industry capacity. Hence, a stagnation of world growth would have crucial effects on the German forest industry sector.

The competitiveness of wood processing industry in the Republic of Serbia during the period 1995-2015

“…A great number of indicators for identification and measurement of competitiveness are widely used and developed in practice and show specific combination of characteristics of competitiveness of the selected manufacturing sector or a country as well (Han, Wen & Kant, 2009). The indicators of competitiveness can be classified in two basic groups: the indicators directed towards results (outcomes) and indicators directed towards determinants (Dieter & Englert, 2007).…”

Evaluating the Competitiveness of Wood Processing Industry

“…In practice, several indicators for identifying and measuring competitiveness, which can be combined, characterize competitiveness of the selected industrial sector or even country (Han et al, 2009). The indicators can be classifi ed into two basic groups, to result-oriented and determinant-oriented indicators (Dieter and Englert, 2007).…”

Export performance and competitiveness in wood products in the Czech Republic and Austria

“…Arguably, unlike Czechia that largely has a comparative advantage in raw wood and semi-Þ nished wood products, Austria has a comparative advantage in semiprocessed and processed wood products. Similarly, studies by Dieter and Englert (2007) also revealed that Austria has a comparative advantage in both semi-processed and processed wood products.…”

“…Similarly, de Carvalho et al (2009) use RCA to evaluate the competitiveness of Brazilian wood pulp in the global market and observed that Brazil ranked among the top competitive nations in the global market of wood pulp products. Their Þ nding further reveals that Brazil and some countries such as Canada, Chile, Finland, the USA, Sweden and Indonesia have a comparative advantage in wood pulp exports for the period between 2000 and 2006. Recent studies have attempted to analyse the performance of forest sector or wood industry in Czech Republic (Kup ák & Šmída, 2015;Bojnec & Fert , 2014;Paluš et al, 2015;Sujová & Hlavá ková, 2015;Sujová et al, 2017) and Austria (Dieter and Englert (2007;Bojnec & Ferto, 2011;Granabetter, 2016;UNECE/ FAO, 2017). Dieter and Englert (2007) analyses the competitiveness of 21 countries (i.e.…”