Investigation the factors influencing on demand for lumber imports in Iran

Document Type : Research Paper

Authors

Abstract

Due to limited forest resources in Iran, imports of round woods and sawn lumber are the
inevitable solution to satisfy the growing needs of wooden industries, therefore, in this
research we have investigated the most important effective variables on demand for imports
of lumber in Iran, by reviewing trends in imports of lumber based on single-equation
regression model and using the time series data of 1984 - 2009 and Ordinary Least Square
(OLS) approach. The functional form of the applied equation is in the form of log-log linear
regression. The results indicated that in the estimated demand for imports function, intercept,
gross domestic product and export petroleum incomes variables have positive impact and
exchange rate, the domestic production quantity of studied product have adverse impact on
demand for imports of lumber.
The significant negative impact of fluctuations in exchange rates of currencies against the
Rial in the recent months is major obstacles on development of forest products industries in
Iran. Also, import quantity of lumber with the first lagged isn’t significant at 5%level and
therefore isn’t a variable affecting the demand for lumber imports. This is due to the unique
role of imported lumber to meat demands of various cellulosic industries in Iran.

Keywords


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