summery about influence of international trade on forest transition
Answers
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.
Explanation:
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.
Current forest recovery efforts in developing countries are different from previous efforts in developed countries, especially since the rise of economic globalization in the 1980s. Therefore, forest transition theory should now consider factors relating to industrialization, urbanization, and globalization. While previous studies have mainly focused on the variable trade of primary sector products, this study applies a more holistic research perspective and discusses, more widely, the links between trade, adjustment of trade structure, FDI, and forest transition. The results suggest that the total export value has a significant negative effect on forest area and volume, while the percentage of non-primary products has a significant positive impact on forest volume and density in the 76 developing countries studied. These results indicate that a country or region may improve the forest resource conditions by upgrading the export structure through the development of export-oriented manufacturing and service industries during the process of global industrial restructuring. This demonstrates the need to consider the overall global economic situation of a country when exploring the effects of economic globalization on forest transitions. In addition, this study attempts to address extant concerns regarding the quality of forest transitions by moving beyond the analysis of forest coverage to explore changes in both forest area and forest volume.
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