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Dynamics of Wood Pulp Production: Evidence from OECD Countries
Forests, 2017-04, Vol.8 (4), p.107
[Peer Reviewed Journal]
Copyright MDPI AG 2017 ;ISSN: 1999-4907 ;EISSN: 1999-4907 ;DOI: 10.3390/f8040107
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Title:
Dynamics of Wood Pulp Production: Evidence from OECD Countries
Author:
Jaunky, Vishal Chandr
;
Lundmark, Robert
Subjects:
Cointegration analysis
;
Cross sections
;
cross-sectional dependence
;
Economic forecasting
;
Economic models
;
Economic sectors
;
Economics
;
Forest conservation
;
Forest management
;
Integration
;
Nationalekonomi
;
production shocks
;
Pulp
;
pulp production
;
Purchasing power parity
;
structural breaks
;
unit root tests
;
Wood pulp
Is Part Of:
Forests, 2017-04, Vol.8 (4), p.107
Description:
This paper investigates whether shocks to pulp for paper production for 17 Organisation for Economic Co-Operation and Development (OECD) members over the period 1980-2012 are transitory or permanent. A variety of univariate and panel data unit root tests are employed. The presence of structural breaks is taken into account when performing those tests. Based on the Narayan-Popp univariate unit root test, wood production series for approximately 64.71% of countries is found to follow a non-stationary process. However, univariate unit root tests tend to have low power when the time span is relatively short. Consequently, three generations of panel unit root tests are considered. Cross-sectional dependence is detected. The first generation of unit roots do not effectively control for cross-sectional dependence, while the second and third generations do. The third generation accounts mainly for cross-sectional co-integration. As a confirmatory analysis, both unit root tests that tests for the null of non-stationarity and stationarity are considered. Most of the panel unit root tests point towards a non-stationary process. Hence, while these shocks can be transmitted to other economic sectors, past behaviours of wood production cannot be used for forecasting purposes. Forest conservation policies can have a permanent impact on pulp for paper production.
Publisher:
Basel: MDPI AG
Language:
English
Identifier:
ISSN: 1999-4907
EISSN: 1999-4907
DOI: 10.3390/f8040107
Source:
ROAD: Directory of Open Access Scholarly Resources
ProQuest Central
DOAJ Directory of Open Access Journals
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