Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah
This study investigates the main factors affecting supply and demand of log and sawn timber of Sabah. The partial adjustment and adaptive expectation (PAAE) frameworks for log and sawn timber were developed and estimated using time series data. The regression results and simulation tests indica...
| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
1992
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8038/1/FEP_1992_2_A.pdf |
| _version_ | 1796967448066392064 |
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| author | Mais, Kinus |
| author_facet | Mais, Kinus |
| author_sort | Mais, Kinus |
| collection | UPM |
| description | This study investigates the main factors affecting
supply and demand of log and sawn timber of Sabah. The
partial adjustment and adaptive expectation (PAAE)
frameworks for log and sawn timber were developed and
estimated using time series data.
The regression results and simulation tests indicate
that the estimated models are satisfactory. All the
significant coefficients have the correct signs. The Root
Mean Square Percentage Error (RMSPE) and Theil inequality
Coefficient values of the estimated models are low.
The finding sindicate that the long run supply
elasticity value with respect to logged area is low (0.19). On the contrary the factors influencing domestic
demand for log are elastic. The long run domestic demand
elasticity value with respect to domestic price and construct ion activities are -1.23 and 2.43 respectively.
In the world market, log export demand is influenced by
export price and construct ion activities of industrial
countries. The long run export demand elasticity value
with respect to export price and industrial construct ion
activities are (-7.61) and (3.34) respectively.
In the sawn timber market, the long run supply
elasticity value with respect to domestic price, log input
price,saw milling recovery rate and dummy variable for
government incentives are 5.23, -0.79, 0.64, and 0.5 1
respectively. On the domestic demand side, only the
construction activity is found to have an influence o n the
quantity demanded. The long run domestic demand elasticity
with respect to this variable is 7.54. Meanwhile in the
world market, the long run export demand elasticity value
with respect to export price, real effective exchange
rate, construct ion activities of industrial countries and
world economic recession are -4.00, -1.32, 4.21 and -0.35
respectively.
The regression results revealed that the government
policy to reduce logging area does not seem to have a
substantial impact on the supply of logs. Also indirectly,
log export royalty and restriction ion policies could
influence log export volume(ceteris peribus). The
government incentives such as low royalty rates on logs
utilised domestic ally can encourage further down stream
processing. |
| first_indexed | 2024-03-06T07:14:04Z |
| format | Thesis |
| id | upm.eprints-8038 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:14:04Z |
| publishDate | 1992 |
| record_format | dspace |
| spelling | upm.eprints-80382010-10-11T04:34:59Z http://psasir.upm.edu.my/id/eprint/8038/ Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah Mais, Kinus This study investigates the main factors affecting supply and demand of log and sawn timber of Sabah. The partial adjustment and adaptive expectation (PAAE) frameworks for log and sawn timber were developed and estimated using time series data. The regression results and simulation tests indicate that the estimated models are satisfactory. All the significant coefficients have the correct signs. The Root Mean Square Percentage Error (RMSPE) and Theil inequality Coefficient values of the estimated models are low. The finding sindicate that the long run supply elasticity value with respect to logged area is low (0.19). On the contrary the factors influencing domestic demand for log are elastic. The long run domestic demand elasticity value with respect to domestic price and construct ion activities are -1.23 and 2.43 respectively. In the world market, log export demand is influenced by export price and construct ion activities of industrial countries. The long run export demand elasticity value with respect to export price and industrial construct ion activities are (-7.61) and (3.34) respectively. In the sawn timber market, the long run supply elasticity value with respect to domestic price, log input price,saw milling recovery rate and dummy variable for government incentives are 5.23, -0.79, 0.64, and 0.5 1 respectively. On the domestic demand side, only the construction activity is found to have an influence o n the quantity demanded. The long run domestic demand elasticity with respect to this variable is 7.54. Meanwhile in the world market, the long run export demand elasticity value with respect to export price, real effective exchange rate, construct ion activities of industrial countries and world economic recession are -4.00, -1.32, 4.21 and -0.35 respectively. The regression results revealed that the government policy to reduce logging area does not seem to have a substantial impact on the supply of logs. Also indirectly, log export royalty and restriction ion policies could influence log export volume(ceteris peribus). The government incentives such as low royalty rates on logs utilised domestic ally can encourage further down stream processing. 1992 Thesis NonPeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/8038/1/FEP_1992_2_A.pdf Mais, Kinus (1992) Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah. Masters thesis, Universiti Pertanian Malaysia. Lumbering - Sabah - Economic aspects - Case studies Timber - Sabah - Economic aspects - Case studies English |
| spellingShingle | Lumbering - Sabah - Economic aspects - Case studies Timber - Sabah - Economic aspects - Case studies Mais, Kinus Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title | Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title_full | Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title_fullStr | Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title_full_unstemmed | Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title_short | Econometric Analysis of Supply and Demand for Log and Sawn Timber in Sabah |
| title_sort | econometric analysis of supply and demand for log and sawn timber in sabah |
| topic | Lumbering - Sabah - Economic aspects - Case studies Timber - Sabah - Economic aspects - Case studies |
| url | http://psasir.upm.edu.my/id/eprint/8038/1/FEP_1992_2_A.pdf |
| work_keys_str_mv | AT maiskinus econometricanalysisofsupplyanddemandforlogandsawntimberinsabah |