Linkages of forestry and forest industry in the Finnish economy.

Abstract

The purpose was to analyse the importance of forestry and forest industry in the Finnish economic development since the 1950’s, and to find out how the sector has contributed to the growth of the national economy through other sectors. Data were derived from the input-output tables of 1959, 1970 and 1980. Information provided by Hirschmanian linkages was expanded by taking into account e.g. induced, consumption, final demand and absorption linkages. The linkages of forestry and forest industry had multiplied during the study period. Both final demand linkages and intermediate product linkages were significant. The sector’s contribution to the development of metal and machinery and equipment industries as well as that of energy/water supply was significant. Integration with most other sectors has increased. Indirect production coefficients of forestry and forest industry were larger than on average in manufacturing. Because of labour productivity growth, production and employment coefficients were different. The PDF includes an abstract in Finnish.