Abstract:
The effects of log export ban (LEB) policy and dynamics of global tropical timber markets
on the growth of Ghanaian timber industry were studied. The purpose was to follow the trend
in the growth of timber industry from 1984 to 2005 using Fisher index and semi-log regression
analysis. The study showed that the volume of plywood, veneer, and processed wood exported
before the period of 1984–1995 and during the LEB policy (1996–2005) was, respectively, 6%
and 46% of the total exports during those periods. On the contrary, the aggregate price index
of all products exported before the LEB policy was up by 129% compared to 3.9% for the
period during the LEB policy. A further decline in prices of the most products exported during
the LEB policy was found by the study. Thus even though an LEB policy could increase
volume share of value-added products, it cannot guarantee growth in prices of wood products.
r 2008 Elsevier GmbH. All rights reserved.
JEL classification: Q23; Q27
Keywords: Export-led growth; Log export ban; Ghana; Growth rate; Wood industry
