Contribution of Timber Export on the Economic Growth

Categories: Deforestation

Theoretical of Export

The important representative of export -base idea was once Douglas C. North (born 1920) who in the 1950s refused gradualist theories of r egional development, which advocated a gradual switch between primitive forms of the economic system to developed forms, and superior that the key role in the
improvement of man or woman areas in the USA was performed by way of the demand for the merchandi se which could be pr oduced regionally in the place Blazek ( 2008).
The principle put emphasis mainly on the development of export sectors which has the role of a multiplier (very stimulating field), and different fields in the vicinity are more or less conc ern to the export fie ld and secure its things to do Adamčík ( 2002).

Export is everything that is exported past the borders of the regional market, es pecially abroad Vystoupil( 2003). Blazek and Uhlíř (2002) country three fundamental pillars of North theory: Region need to be de scribed as a region with a frequent export -base, Economy´s development is determined by way of the success of its export sector, export –
base, which is the foremost factor figuring out each absolute and relative income of the region, affects the improvement of offerings and the residential attainable of the area.

Export -base principle determines regional improvement via assisting export which is presently broadened in connection with the procedures of monetary integration as barring export markets the expans ion of t he economy is now not possible Vystoupil ( 2003). According to Adamčík, the
development of export may also come across limitations which include: Tariff, Currency alternate price (however, export supporting costs may additionally positively influence the development of the export of a region), The absence of monetary policies of the nation (protection insurance policies to shop export
of a vicinity – e.

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g. safety of coal -mining against the import of low -cost coal from abroad).

Theoretical of Economic growth

Adam Smith emphasized increasing return s as a source of economic growth. He targeted overseas change to widen the market and raise the productiveness of trading countries. Trade allows the United States of America to buy items from overseas at a decrease value as compared to which they can be
produced in the domestic country.
In contemporary boom theory, Lucas has strongly emphasized the position of increasing returns via direct foreign investment which encourages studying employing doing through knowledge capital. In Southeast Asia, the newly i ndustrialized countries (NICs) have accomplished very excessive boom
quotes in the final two decades.


In this chapter present the origins of Cameroon timber follow by Cameroon local market, Timber Production and Export, the contribution of timber export on Cameroon economic follow by analyzing of some problems of Cameroon timber .

The Origins of Cameroon Timber Exploitation

From a macroeconomic viewpoint, the exploitation of timber star ted during German colonization; took off after Second World War II, and intensified at the beginning of the 1990s. Timber thus became the second most important source of export income, after oil. The conflictive potential of the forest arises
from the high profitability of its timber resources in a context of weak state control. This tends to drive loggers to act in contravention of their obligations, using corruption and other illegal practices, against the interests of the other forest users who complain accordingly. The resulting degradation of the forest
tends to impoverish local populations. This is why the concept of ecologically unequal exchange will be implicit in the discussion throughout the article. The notion refers to a typical feature of the Ca meroonian wood major, or commodity chain, namely an extractive and export process characterized
by the shift of negative environmental and social impacts onto forest communities and by the appropriation of wealth by Northern industries.

Timber local Market in Cameroon

The quantity of Cameroonians involved in timber things to do grew appreciably for the duration of the period of financial depression, at the end of the 1980s, and used to be further boosted in the second 1/2 of the 1990s.
The quantity o f timber harvested via individuals or small agencies grew from 250,000 m3 in 1996 (Enviro -Protect 1997) to 500,000 m3 in 2000 (MINEFI 2000). In 2002 one short -term assessment used to be carried out on countless markets in Yaoundé and Douala Plouvier et al. (2002). Its results extrapolated to the entire country and to a complete year, estimated the bushes consumption of the domestic timber zone at about 1 million m3 (Round -Wood Equivalent, RWE), of which about 10% entered the reliable export market, i.e. the Port of Douala, and the rest was bump off locally. In 2005, an analysis carried out on some markets in Yaoundé reached similar con clusions (JMN Consultant 2005). Considering that 40% of the trees used domestically was estimated, in the identical year s, to be sourced from industrial scraps (ONF -International et al. 2002; Plouvier et al. (2002), the whole harvest
for home consumption may want to be estimated at about 540,000 m3 RWE unaccounted for in respectable production statistics.\nWe discover reacha ble figures on the manufacturing of bushes by way of small – and medium -scale loggers are a gross under -estimation.

Timber Production and Export

According to ITTO (2017) , the Cameroonian woodland enterprise produced about 3.2 million m3 of logs in 2 015. The majority of this quantity is used for the export of primary trees products, which account for a whole export value of 900.4 million US bucks in 2015. Although the majority of the logs are processed inside the country, the production of enormously processed products is nonetheless especially rare. The forest industry ordinarily produces main timber products, with the major export products being logs, sawn wood, plywood, and veneer. Main commercial bushes species include Ayous (Triplochitonscleroxylo n), Azobé (Lophiraalata), Iroko (Miliciaexcelsa), Kossipo (Entandrophragmacandollei), Movingui (Distemonanthusbenthamianus), Okan (Cylicodiscusgabunensis), Sapelli (Entandrophragmacylindricum), Tali (Erythrophleumivorense; Erythrophleumsuaveolens). The Cam eroonian exports are sold to all regions of the world. Besides overland export routes to different African countries, most bushes are exported through the foremost port of Douala. This port is additionally used as one of the most important ports for the ex port of timber harvested in the Republic of Congo and the Central African Repub lic.

 Contribution of Timber Export on the Economic Growth in Cameroon

Timber emerged as a principal export commodity in Cameroon in the late1980s. Agriculture used to be the major source of economic boom from the early 1960s to 1977, the place it employed about 80% of the labor force, provided 85% of exports and contributing about 34% to GDP. Annual real GDP averaged 4.8% inside this period. From 1978 to 1985, the monetary boom used to be realized from oil production, with boom fees as excessive as 12% (Amin, 2002). Averagely, oil rents as a share of GDP had been about 13% inside this period (World Development Indicators, 2014). In 1986, monetary disaster set in due to the fact of the fall in the world market expenses of its foremost agricultural exports and bad monetary policies. As a result, oil rents as a share of GDP fell to about 7% from 1986 to 1989 WDI (2014). Due to structural adjustment policies of the late 1980s, Ca meroon needed to broaden its slender export base to impervious a favorable balance of trade. And considering that revenues from oil exports have been declining, timber was once now considered as an overseas earner that could assist the economy. The contrib ution of timber to GDP, therefore, expanded steadily from about 3.5% in 1989 (Atyi, 1998) to 6.7% in 1995 and subsequen tly reached 12% of GDP in 2000 Ekoko ( 1999 ); Brown and Schreckenberg ( 2001 ); Siebock ( 2002). During the 1994/95 fiscal year, the need to provide the external\ndebt and create employment to the increasing population of the country was once a driving pressure fo r trees harvesting in Cameroon Siebock ( 2002). Cameroon has a foreign market for trees in Europe, Asia, America and other components o f Africa. In 1970, the quantity of total spherical timber exported was once estimated at 511,200 m3. This delivered about $15 million to export revenue, representing about 1.3% of GDP. In 1980, the export of all -round timber contributed about $113 million to export revenue and 1.7% to GDP. The shares of exported round wood to GDP in 1990, 2000, 2010 and 2012 are 1.6%, 1.1%, 1.1%, and 0.9% respectively. In 2012, the export quantity used to be estimated at 514068 m3, with a corresponding exportprice of abou t $214 million. Averagely, annual exports of round timber stood at about 634 m3 for the period, with a monetary fee of approximately $106 million, which represents about 1.2% of GDP over 1980 -2014. From the above statistics, it is discovered that the contr ibution of timber exports to GDP is lowering in value over the years, despite rising portions exported.

The Problems of Cameroon Timber

The foremost drivers of deforestation in Cameroon are conversion to agriculture, from each massive and medium -scal e plantations, as properly as smallholders, fuel -wood harvesting, mining, and infrastructure development, while unsustainable and unlawful logging has been identified as one of the foremost drivers of woodland degradation in Cameroon. Illegal logging has l ong been recognized as a significant problem in Cameroon. Concerns have been raised over the misuse of sure logging lets in the country, and the lack of nice law and law enforcement (Hoare, 2015).


This chapter describes the nature and source of data that captures issues relevant to the study. It comprises of the methodology base on the different work that we have reviewed in the previous chapter. The next step will bring in issues related to the ordinary least square method o f estimation. This will equally take into consideration the econometric procedures related to studies using time series data. We have one equations that will be estimated using the ordinary least squares method.

Nature and Source of Data

To realize o ur goal, we have used data from two main sources. The World Bank Development Indicators (WDI ) and the Food and Agricultural Organization statistic data on countries trade. The complete set of data for the variables chosen in this work is from these two mai n sources. It covers the time series period from 1980 to 2014 . Th e study period of 35 years (1980 to 2014 ) was selected because of the availability of data for all the variables under studied. Therefore, data on annual real.

Gross Domestic product, fixed cap ital formation, consumer price index, and total labor force are from World Bank publications whil e data on the timber exports looked at are gotten from FAOSTAT. Labor force is considered according to the International Labor Organization (ILO) of the econom ically active population that includes both the employed and the unemployed.

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Contribution of Timber Export on the Economic Growth. (2021, Oct 31). Retrieved from

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