The Impact of International Trade of Raw Wood to the Economic Growth of Forest-Based Sectors in the Czech and Slovak Republics

Abstract

International trade metrics can indicate the competitive advantage of the industry in international markets. However, the export of the raw materials utilized by the industry can influence company and industry performance negatively. This article assessed the effectiveness of the international trade with raw wood and its impact on the economic results of the industry. A system of indicators was formed to measure the international trade impact on the industry performance, and the following hypothesis was established: increasing the international trade with raw wood influences the economic growth of the industry negatively. The results confirmed the hypothesis, showing that the growth of export volume and also import of raw wood decreased industry performance during the monitored period. In the forestry sector, the more significant influence appeared in revenues, which influenced the profit most in the timber industry. Other findings demonstrated that the international wood trade in the Czech Republic and the Slovak Republic does not create a comparative advantage, but decreases competitiveness of the forestry sector.

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

“…Arguably, Czechia mostly has a comparative advantage in raw wood and semi-Þ nished wood products, but low processed products. Although studies by Sujová and Hlavá ková (2015) reveal that Czechia has had a comparative advantage in processed wood products, their results indicate that the country's RCA has a negative, decreasing trend despite increasing net exports. Thus, the sector gradually loses its competitive ability, partially attributed to the low specialization of the country in the value-added in the product groups.…”

“…Thus, known as 'Balassa index', which is now widely used empirically to identify a nation's most robust and weakest export sectors worldwide (Bojnec and Fert , 2014). Similarly, the model has been used in the forestry and wood sectors in recent years (Han et al, 2009;Bojnec and Fert , 2012;Sujová and Hlavá ková, 2015;Sujová et al, 2017). The index tries to identify product groups where the targeted nation has a distinct advantage in the world market.…”

“…Thus, trade competitiveness is the ability of an economy to produce products that meet the test of global competition (Krugman, 1994). Trade competitiveness and performance are always regarded as synonymous, and competitiveness of an economy is often iden-tiÞ ed with its export performance (Sujová & Hlavá ková, 2015;Priede & Pereira, 2015;Zdráhal & Be vá ová, 2018). Similarly, countries are globally competitive when exported more in value-added products than imports.…”

“…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.…”

Change of Income from Forest Products Based on Geographical Location of Enterprises and Some Marketing Variables

“…Changing market conditions and consumer behavior indirectly affect forest enterprises (Halaj et al, 2018). Wood based products are the most important source of income for forest enterprises (Sujová et al, 2017).…”