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Economic Adjustment and the Forestry Sector: Does Removing the Log Export Ban Matter Much?

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Abstract

This paper is an attempt to describe empirically, and quantify when possible, the trade-off between deforestation and efficiency under Indonesia's log export regime. It asks whether the log export ban has encouraged less efficient use of domestic logs and whether it has helped to reduce the rate of round wood extraction. The empirical study suggests that the former did occur during the LEB and APKINDO regime of 1985-1997, while the latter cannot be shown empirically.

Suggested Citation

  • Arya B. Gaduh & Kurnya Roesad, 2004. "Economic Adjustment and the Forestry Sector: Does Removing the Log Export Ban Matter Much?," CSIS Economics Working Paper Series WPE081, Centre for Strategic and International Studies, Jakarta, Indonesia.
    • Handle: RePEc:sis:wpecon:wpe081
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    File URL: http://www.csis.or.id/working_paper_file/40/wpe081.pdf
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    Keywords

    Indonesia; log ban; economic crisis; adjustment; forestry; econometrics;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

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