Standard Procedures and Methods for Economic Impact and Contribution Analysis in the Forest Products Sector

Henderson, James E.; Joshi, Omkar; Tanger, Shaun; Boby, Leslie A.; Hubbard, W. G.; Pelkki, Matthew H.; Hughes, David W.; McConnell, T. Eric; Miller, Wayne; Nowak, Jarek; Becker, Charles A.; Adams, Tim O.; Altizer, Clay; Cantrell, Rick; Daystar, Jesse; Jackson, Ben; Jeuck, James; Mehmood, Sayeed R.; Tappe, Phil

doi:10.5849/jof.16-041

Cited by 13 publications

(11 citation statements)

References 6 publications

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“…The forest industry is among sectors of global importance (Dieter and Englert, 2007), and it has also attractive economic impact and contribution along with the effects on employment in the world (Kupcak and Smida, 2015;Henderson et al, 2017). Being export oriented and innovative are seen as assets (Valimaki et al, 2004) so the circumstances have always been challenging for this sector.…”

Section: Resultsmentioning

confidence: 99%

The effects of liquidity on inventory: Evidence form forestry subsector in Turkey

Acikgoz

Demirkol

Apak³

2018

Eurasian Journal of Forest Science

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As a part of Agriculture sector, forestry subsector is the main provider for the forestry products industry which has been neglected in terms of short-term liabilities and liquidity analysis. Liquidity is a function of the liabilities of the businesses in the short-run and it is expected to consist much of trade credit rather than bank credit. This study tries to reveal the long-term dependence of the short-term inventories on cash and cash equivalents, short-term bank credit used, and short-term accounts receivable as a percentage of short-term liabilities in the forestry products subsector in Turkey. We analyze the sectoral three years averages of aggregate balance sheet data in the long-term (1998-2016) and we depict that inventories have correlations with cash and cash equivalents, short-term bank credit and short-term accounts receivable and we also reveal that the sector's short-term liabilities have had a diminishing trend in the very long-run. After introducing the model, we have run the linear regression of the model and we share the robust results of the tests. The findings give evidence that inventories, which are in fact the most illiquid part of the current assets, have bank credit dependency as much as accounts receivable though decreasing liabilities in the short-term. We therefore offer suggestions on the results for the forestry products subsector so as to hedge against the potentially adverse liquidity conditions in the near future. Each precaution held for a subsector will therefore help the sustainability of the forestry and the agriculture sector as a whole and it will also contribute as an example therein integrated especially with the marketing strategies.

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Section: Resultsmentioning

confidence: 99%

The effects of liquidity on inventory: Evidence form forestry subsector in Turkey

Acikgoz

Demirkol

Apak³

2018

Eurasian Journal of Forest Science

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“…IO modeling software, such as IMPLAN, have been prominently featured in the economic and regional science literature to project or assess the economic impact of a variety of agricultural uses, including economic contribution (Tytus et al, 1996), biofuels production (De La Torre Ugarte and Jensen, 2007;Bailey et al, 2011), and dairy industry impacts (Jafri and Buland, 2016), among others. IMPLAN has also been specifically and extensively used to measure the economic impact of forestry and wood products across a variety of sectors, including biofuels production from wood sources (Joshi et al, 2012;, wood pellet production (Joshi et al, 2012;Henderson et al, 2016;Scouse et al, 2017), woody biomass (Joshi et al, 2012;Jackson et al, 2018), and wood furniture production (LaBissoniere and Bowe, 2006;Lester and Brun, 2015). IMPLAN has also been used in studies similar to this one to capture sector-wide changes in economic contribution of the forestry industry across a multi-state region (Aruna et al, 1997;Tilley and Munn, 2017a,b).…”

Section: Methods and Datamentioning

confidence: 99%

“…It was appropriate to conduct a multi-industry economic contribution analysis for this research since more than one industry is being examined as part of the same activity. As noted by Henderson et al (2016) on page 112, an 'economic contribution analysis estimates the relative importance' of the existing wood industry cluster, with outputs of jobs, labor income, value added, and total output. We c Southern Regional Science Association 2019.…”

Section: Methods and Datamentioning

confidence: 99%

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Economic Contribution of Ohio’s Wood Industry Cluster: Identifying Opportunities in the Appalachian Region

Michaud¹,

Jolley²

2019

Review of Regional Studies

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Ohio's wood industry cluster contributes nearly $25 billion and 116,321 jobs to the state's economy, yet most of this value-added impact occurs outside of the heavily forested Appalachian Ohio region. This research, conducted as part of a Small Business Administration Regional Innovation Cluster grant, includes a multi-industry economic contribution analysis to document wood industry impacts to the entire State of Ohio and the 32-county Appalachian Ohio region. Findings indicated that Appalachian Ohio contained lower paying and lower on the value chain sectors compared to the state. This paper highlights these metrics and presents recommendations to improve investment and value-added industry opportunities in the wood industry cluster to support Appalachian Ohio.

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“…As the macroeconomic circumstances change, forestry sectors and their products have been among the effective and vulnerable parts of the global economy and in many countries [1,2,3,4] along with Turkey [5,6,7]. The forestry products sector has been assessed as a subsector of agriculture in Turkey.…”

Section: Introductionmentioning

confidence: 99%

Bank Credits and Their Influence on Accounts Receivable: The Case of the Forestry Products Sector in Turkey

Acikgoz

Demirkol

2019

JEMT

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The leverage of bank credit may result in different consequences on current assets. As the accounting procedures report financial credit in two significant terms, short-term bank credit and long-term bank credit, the study tries to reveal the effect of those liabilities on the level of accounts receivable in the forestry products sub-sector in Turkey. The study examines a set of long-term data including current ratio, cash and cash equivalents ratio, and short-term inventories ratio as control variables to test two different models in which either short or long-term bank credit consequence is predicted. The results confirm that time constraints of bank credits have both significant roles on the level of account receivables. However, the significance is barely higher for the effect of long-term bank credit. Therefore, we conclude that the businesses of the forestry products sector in Turkey should also be sensitive primarily on the level of their long-term bank credit along with the level of short-term bank credit amongst the liabilities in balancing the accumulation of accounts receivable. Thus, businesses of the sector would better consider the level of bank credits in the conditions of risky, non-performing or accumulating accounts receivable.

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Standard Procedures and Methods for Economic Impact and Contribution Analysis in the Forest Products Sector

Cited by 13 publications

References 6 publications

The effects of liquidity on inventory: Evidence form forestry subsector in Turkey

The effects of liquidity on inventory: Evidence form forestry subsector in Turkey

Economic Contribution of Ohio’s Wood Industry Cluster: Identifying Opportunities in the Appalachian Region

Bank Credits and Their Influence on Accounts Receivable: The Case of the Forestry Products Sector in Turkey

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