Question

summary of influence of internation al trade on forest transition​

Answer 1

Answer:

The condition of economic globalization since the 1980s in developing countries is different from preceding efforts in developed nations. So, the forest transition hypothesis should now consider different factors relating to urbanization, industrialization and globalization. While existing kinds of literature has mostly focused on the trade of forestry goods, but this study focused on the trade of primary goods and adjustment of trade structure on forest cover dynamics in 62 developing countries and different income groups, such as high income (HI), low income (LI), lower middle income (LMI) and upper middle income (UMI) countries. In this study we used Random effect model for income groups and GMM model for overall panel for the purpose of possible outcomes. This study results suggested that the percentage of non-primary goods exports has a significant positive impact on forest cover in 62 developing countries and different income groups of the study. Similarly, the import of forestry goods and import of agricultural goods has positive and significant impact on forest cover of 62 developing countries with (HI) and (UMI) except (LI) and (LMI) countries. The total export has a significant positive impact on forest cover of 62 developing countries with (HI), (LI) and (UMI) countries, similarly, the total exports value of (LMI) countries show a non-significant positive impact on forest cover. These results of the study specify that a nation or region can improve the forest cover through the trade and adjustment of trade structure. This study tries to explain the existing concerns about the quantity of forest transition by moving the examination of forest attention to discover alterations in forest cover.