Impact of Trade Policies on Wood Products Export in Ghana

2015

English

The purpose of the study was to apply Autoregressive Integrated Moving Average (ARIMA) with intervention model (also known as intervention analysis) to determine the impact of the review of the timber export levy from 3% to 1.5% in 2007 and the regulation of trade of Pericopsis elata (Afrormosia) on the export of wood products in 2008. Monthly time series data on exports of wood products from January 1997 to May 2014 were extracted from monthly and annual reports on export of wood products published by the Timber Industry Development Division (TIDD) of the Forestry Commission of Ghana. The results showed that the reduction in the timber export levy significantly decreased the volume of wood products export by 23%. The introduction of the regulation of trade of Pericopsis elata resulted in a non-significant decrease of 11% in the volume of wood products export. Moreover, the results revealed a significant long-term gradual and permanent decrease in the volume of wood products export after the enactment of the policy on regulation of trade of Pericopsis elata. The results of this study are expected to inform policy makers on the outcome of their decisions.

Acquah, S. B.; Avuglah, R. K.; Harris, E.