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Are There Efficiency Gains from the Removal of Natural Resource Export Restrictions? Evidence from British Columbia
Author(s) -
Fooks Jacob R.,
Dundas Steven J.,
Awokuse Titus O.
Publication year - 2013
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12041
Subject(s) - economics , error correction model , natural resource , econometric model , agricultural economics , econometrics , economy , natural resource economics , cointegration , ecology , biology
Log export bans ( LEB s) are a popular development tool utilised by developing nations with sizable endowments of timber; however, the actual impact of these policies is debatable. B ritish C olumbia has a developed forestry sector and still maintains a LEB . This trade restriction continually creates conflicts with C anada's international trade partners, including the U nited S tates. This paper examines the efficiency implications of a hypothetical removal of roundwood export restrictions in British Columbia using roundwood price and quantity data from 1995 to 2008. A time‐series econometric approach is utilised to determine supply and demand elasticities for B ritish C olumbia's roundwood. Empirical results from a vector error correction model suggest that a removal of export restrictions will generate an overall increase of approximately $347.91 million US dollars per year to B ritish C olumbia's forest economy.