US imports of softwood lumber: Assessing the significance of spillover effects

Abstract

Moving beyond the traditional focus on U.S.-Canada trade, this study employs the Spatial Durbin Model (SDM) to explore the broader dynamics of softwood lumber imports. A key contribution of this research is the recognition of spatial spillover effects, revealing the influence of third-country exporters on U.S. softwood lumber imports.The positive spatial dependence coefficient suggests that countries exporting softwood lumber to the U.S. stimulate their neighbors to follow suit, emphasizing the importance of accounting for spatial interdependencies in wood products trade analysis. These findings carry significant policy implications. Policymakers must adapt to the evolving global trade landscape, acknowledging the increasing diversity of softwood lumber suppliers. Consideration of tariffs, language barriers, and geographic factors in trade policies is imperative. Furthermore, the potential for establishing regional hubs for softwood lumber sourcing is highlighted, offering opportunities to enhance supply chain resilience and sustainability.

Citation

Boubacar, Inoussa. 2024. US imports of softwood lumber: Assessing the significance of spillover effects. Forest Policy and Economics. 160(1): 103162. https://doi.org/10.1016/j.forpol.2024.103162.