DISTRIBUTIVE ECONOMIC-IMPACTS OF INTENSIVE TIMBER PRODUCTION

Programs and policies for development of natural resource oriented regions frequently focus on value-added activities. The resulting regional economic development is typically analyzed in aggregate terms; examples of which include total number of jobs created or total value-added impact. Regional economic development, however, is generally more complex and includes components such as income distribution, wage/skill levels of jobs created, and differential impacts on factor input ownership. Effectiveness of natural resource management programs and policies should be assessed for these broader components. The objective of this paper is to show the impact that production and processing of timber have on different household income groups. Timber production potentials on three landownership categories and the forward linkages to wood processing industries are shown to differentially impact aggregate income of three household income groups through social accounting matrix interdependency analysis.