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Estimating the Imperfection in Sawtimber markets: a case study for the South Pacific Region, Colombia

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  • Sandra Rodríuez Piñeros

    (Oklahoma State University)

  • David K. Lewis

    (Oklahoma State University)

Abstract

This paper estimates the degree and nature of imperfections in the timber markets for the South Pacific Region of Colombia. These markets are described under the structure/conduct/performance paradigm. An econometric analysis was undertaken to estimate the degree of imperfection. Market structures indicate high levels of seller concentration. These are result of barriers to entry associated with: knowledge and capital requirements; deficiencies in the banking system; vertical integration of participants;available transportation; and other institutional constraints. These imperfections create inequalities in the distribution of income, unemployment and regional poverty. As a consequence the timber industry's contribution to socioeconomic progress is limited and produces a negative impact on the conservation of forestecosystems.

Suggested Citation

  • Sandra Rodríuez Piñeros & David K. Lewis, 2005. "Estimating the Imperfection in Sawtimber markets: a case study for the South Pacific Region, Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 63, pages 231-260, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2005:i:63:p:231-260
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    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/issue/view/315
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    More about this item

    Keywords

    Industrial organization; imperfect markets; oligopoly; Lerner index; timber markets;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • D0 - Microeconomics - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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