Dynamics of Wood Pulp Production: Evidence from OECD Countries
AbstractThis 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. View Full-Text
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Jaunky, V.C.; Lundmark, R. Dynamics of Wood Pulp Production: Evidence from OECD Countries. Forests 2017, 8, 107.
Jaunky VC, Lundmark R. Dynamics of Wood Pulp Production: Evidence from OECD Countries. Forests. 2017; 8(4):107.Chicago/Turabian Style
Jaunky, Vishal Chandr; Lundmark, Robert. 2017. "Dynamics of Wood Pulp Production: Evidence from OECD Countries." Forests 8, no. 4: 107.
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