The round wood market in Greece: An empirical approach

E. Zafeiriou, G. Arabatzis, Th. Koutroumanidis


The present study aims to determine the factors affecting the producer price of the industrial round wood. The factors examined as determinants of the producer price are the volume of domestic production, imports and exports of the industrial round wood in Greece. As a proxy for the producer price, the round wood of long length (> 2m) price is employed. For the achievement of the aforementioned objective, Johansen cointegration technique was implemented. The results confirmed the existence of a sole long-run relationship between the variables studied while the estimation of the vector error correction model indicated a statistically significant speed in the long-term equilibrium. The implementation of the Granger causality test has shown that the producer’s price is affected by the imported volume while the domestic production is determined by the volume of exports. Finally, the producer prices are determined by the exports and the imports of the Greek wood sector and vice versa. All the aforementioned results are consistent with the classic supply-demand economic theory.

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DOI: 10.5424/fs/2112211-01996