Abstract:

Centered on the “forestry” sector that consists mostly of timber and partly of nonwood forest products, this study is conducted to analyze by the input-output (I-O) technique the impact of forest-related good and services in the national economy. To this end, an industry-by-industry national I-O model is constructed, with “industry technology assumption”, based upon the supply and use tables of the “rectangular” I-O structure. The model constructed herein is used to examine the linkage and multiplier effects of forestry sector in the Turkish economy. First of all, forestry sector appears to be one the weakest three sectors with respect to total (direct and indirect) backward linkage. On the other hand, the sector tends to become prominent in regard to direct forward linkage. Yet its total (direct and indirect) forward linkage is around the average of the economy. Concerning the multiplier effects, simple and weighted simple output multiplier of forestry sector is among the lowest, which implies that it has rather low direct and indirect productive backward stimulus in the whole economy as it realizes its production. Meanwhile, the general picture of the simple basic input (gross value added components) and import multipliers of forestry sector is as follows: Its effect on consumption of fixed capital (depreciation) and intermediate imports is somewhat low, whereas it has relatively high total effect on the creation of other gross value added (income) components. Nevertheless, the picture of Type I multipliers seems to be vis-à-vis the simple income and import multipliers: Type I ranks of forestry sector among 48 sectors in the model appear to drop for the gross value added components whose simple multipliers are high; whereas its Type I ranks appear to be high for fixed capital consumption and intermediate imports whose simple multipliers are low.

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