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THE INFLUENCE OF INVESTMENTS AND FOREST RESOURCES ON GROSS VALUE ADDED IN FORESTRY: PANEL DATA ANALYSIS
Abstract
The goal of present paper is to study the influence of investments and forest resources on gross value added in forestry. To achieve this goal are used comparable data from Eurostat for the period 2015-2022 for 12 European union (EU) member states: Austria, Bulgaria, Croatia, Czechia, Finland, France, Germany, Poland, Portugal, Romania, Slovakia and Sweden. A panel regression model with fixed time effects is specified. The dependent variable is the gross value added per hectare (euro/ha) and as regressors are used area of wooded land per capita (ha/capita), growing stock per hectare (m3/ha), net annual increment per hectare (m3/ha), roundwood removals under bark per hectare (m3/ha) and gross fixed capital formation (investments) per hectare (euro/ha). The regression model is adequate. The coefficient of determination of the regression model is 0.4231, i.e. about 42.31% of the changes in the size of gross value added can be explained by the total influence of the above-mentioned factor variables and fixed time effects. Some of the regression coefficients are statistically significant and confirm the positive impact of regressors on gross value added produced in the forestry sectors of the studied 12 EU member states. At the same time the coefficient of the time dummy variable for 2020 is negative, which reflects the decline in gross value added in forestry sectors of the 12 EU member due to the COVID-19 crisis.
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