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Forest sector contribution to national economies 2015

The direct, indirect and induced effects on value added, employment and labour income











Li, Y., Mei, B., Linhares-Juvenal, T., Formenton Cardoso, N. & Tshering, C. 2022. Forest sector contribution to national economies 2015 – The direct, indirect and induced effects on value added, employment and labour income. Rome, FAO.




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    The contribution of aquaculture and fisheries to gross domestic product (GDP) is one of the most widely used indicators of its economic performance. Despite strong interest in and great efforts made towards assessing the contribution of aquaculture and fisheries to GDP, there is a general lack of understanding or consensus on how to properly measure the sector’s contribution to GDP and effectively use the measures for evidence-based policy and planning for sustainable aquaculture and fisheries development. While a fisheries GDP measure has been included in the Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development (i.e. SDG Indicator 14.7.1: Sustainable fisheries as a percentage of GDP in small island developing states, least developed countries and all countries), it is nevertheless a Tier III indicator for which no internationally established methodology or standards are yet available. This paper contributes to improving the understanding and measurement of aquaculture and fisheries’ contribution to GDP by: (i) using input-output models (including mathematical formulas and numerical examples) to formulate and clarify a set of measures of aquaculture and fisheries’ contribution to GDP; (ii) discussing alternative methods to estimate the measures under data-poor environments; (iii) suggesting an empirical methodology and general guidelines on the estimation and reporting of the measures; and (iv) exploring how to utilize the measures for evidence-based policy and planning. The conceptual framework and empirical methodology suggested in the paper will help move towards internationally established methodology, standards and guidelines on measuring aquaculture and fisheries’ economic contribution.
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    Assessing the contribution and linkages of the forest sector to the national economy: Case studies on Finland, Malawi, and the United States of America
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Economic contribution of the forest sector is commonly downplayed by only considering its direct impacts while overlooking the ripple effects on other sectors of the economy. This lack of recognition often puts the forest sector in a less favorable position in developing national development strategy and impedes unlocking the sector’s full potential towards sustainable development. This study used three case studies (Finland, Malawi, and the United States of America) to illustrate how the forest sector contributed to national economies through direct, indirect, and induced effects. It identifies and quantifies how the forest sector is linked to other sectors of the economy via backward and forward linkages, and compares the structure of the sectoral linkages across the three studied countries. A structural path analysis approach based on social accounting matrices was used for the analysis. The forest sector was found having a promising potential to contribute to national economies through direct contribution and pathways via other sectors. The forest sector’s indirect and induced effects were found higher than its direct effects in terms of employment, valued added, and labour income. Wood-based processing subsectors in general had higher economic multipliers than the forestry and logging subsector. The real estate, wholesale trade, and food sectors were among the top backward-linked sectors of the forest sector and the construction sector was among the top forward-linked sectors for all three countries. There were great variations in how the forest sector interacts with other sectors among the studied countries. Stage of development, resource endowments, forest tenure, geo-economics, positions in international trade, and national forest policy all played some roles. The results can advance our understanding of the sectoral linkages of the forest sector in national economy and provide thoughts on how to weave the forest sector into national development strategies in a holistic way. Keywords: economic contribution analysis, sectoral linkage, social accounting matrix, structural path analysis, forest sector ID: 3485504
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    Trends and current status of the contribution of the forestry sector to national economies 2004
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    This paper presents information about the contribution of the forestry sector to national economies at the global, regional and country levels. The paper presents figures for total employment, value-added and export earnings in the sector from 1990 to 2000, as well as information about trends in productivity. The figures include a mixture of statistics taken from published sources and FAO estimates. Unfortunately, statistics are not available for many countries or for activities in the informal sector, so these figures must be treated with some caution. However, the figures probably give a reasonable indication of the importance of the sector at the global and regional level and highlight broad changes over time. They also show some of the main differences in the structure of the sector between different countries and regions.

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