Journal of Forest Economics > Vol 8 > Issue 3

Integration in the Norwegian pulpwood market: domestic prices versus external trade

Q. Nyrud Anders, anders.qvale.nyrud@isf.nlh.no
 
Suggested Citation
Q. Nyrud Anders (2002), "Integration in the Norwegian pulpwood market: domestic prices versus external trade", Journal of Forest Economics: Vol. 8: No. 3, pp 213-225. http://dx.doi.org/10.1078/1104-6899-00013

Publication Date: 0/0/2002
© 0 2002 Q. Nyrud Anders
 
Subjects
 
Keywords
cointegrationComposite Commodity TheoremLaw of One Pricelong-run equilibriummarket integrationweak exogeneity
 

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Abstract

Pulpwood from Norway spruce (Picea abies (L.) Karst) traded domestically in Norway, imported to Norway, or exported from Norway is investigated with respect to commodity homogeneity and market integration. The prices imply that pulpwood from Norway spruce is a homogenous commodity, and the three price series are analyzed with respect to market integration. Using the cointegration estimator two cointegrating vectors are found within the system, and the weak Law of One Price can be imposed on domestic- and import prices. Imports are weakly exogenous to the two other variables, indicating that international pulpwood prices leads the domestic market.

DOI:10.1078/1104-6899-00013