Interconnections of Economic Performance, Unemployment, and Forestry Goods Exports: Evidence from the World's Top Ten Forestry Goods Export Countries

Abstract

Aim of the Study: This research examines the connection between exports of forestry products, economic growth and unemployment in the selected nations where forestry goods exports significantly and high impact on the national income. The word Economic performance indicates the overall health of a country’s economy and is measured by the use of indicators like GDP and productivity, and the Unemployment indicates the percentage of the workforce that is jobless, which reflects the state of the labor market.

Methodology: In this study, two variables treated as dependent variables to see whether the export of forestry goods has an impact on them or not. Descriptive statistics are applied for the analysis of the variables, and slope homogeneity and cross-sectional dependence tests are done to confirm the model specifications. Co-integration tests reveal the existence of a co-integration relationship among the variables. An AMG estimator was utilized in this investigation to assess the influence of forest goods exports, population growth, agricultural consumption, interest rates, and inflation on per capita income and unemployment.

Findings: The outcomes reveal that forest goods exports not only increase GDP per capita but also lessen unemployment. Population growth, agricultural consumption, interest rates, and inflation are among the factors that still have a say in the performance of the economy and the level of unemployment.

Conclusion: This was yet another point going of the existing literature regarding the ability of developing countries to export forestry goods. This study also pointed out that the policymakers should enact regulations for the forest industry healthy growth, ensure interest rates remain stable, encourage international cooperation, and apply good inflation management as a way of boosting GDP per capita, cutting down unemployment, and raising overall economic development.