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Regional Log Market Integration in New Zealand

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  • Niquidet, Kurt
  • Manley, Bruce

Abstract

In this paper the integration of log prices across four regions in New Zealand was assessed. A time series of prices for six radiata pine (Pinus radiata D. Don) log grades in each of the regions were tested for co-integration using Johansen’s method and Engle-Granger pair wise tests. Prices for export grades display significant integration across regions and generally follow the law of one price. However, markets for domestic grades tend to be regionally segregated. These results are most likely due to the high costs of transporting logs between regions. Future modelling will need to incorporate such transportation costs in order to adequately characterise log markets in the country.

Suggested Citation

  • Niquidet, Kurt & Manley, Bruce, 2008. "Regional Log Market Integration in New Zealand," Working Papers 37082, University of Victoria, Resource Economics and Policy.
    • Handle: RePEc:ags:uvicwp:37082
    DOI: 10.22004/ag.econ.37082
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    References listed on IDEAS

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    Cited by:

    1. Gil, Jose M. & Montañés, Antonio & Vásquez-González, Bernardo, 2023. "Are prices converging in the global sawnwood market?," Forest Policy and Economics, Elsevier, vol. 155(C).
    2. Chudy, R.P. & Hagler, R.W., 2020. "Dynamics of global roundwood prices – Cointegration analysis," Forest Policy and Economics, Elsevier, vol. 115(C).
    3. Korhonen, Jaana & Henderson, Jesse D. & Prestemon, Jeffrey, 2023. "National forest timber bids and export price interlinkages in the USA: The bounds testing approach," Forest Policy and Economics, Elsevier, vol. 152(C).

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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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