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Jurnal Ekonomi Malaysia

51 (2) 2017 143 – 154

The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia
Kesan Amalan Pengurusan Hutan Secara Mampan (SFM) Kepada Pengeluaran Produk Berasaskan Kayu di Semenanjung Malaysia

Department of Economics
Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

aidawahob@gmail.com

Department of Economics
Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

abrahimabsamad@gmail.com

Department of Economics
Faculty of Economics and Management
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA

mohdshahwahid@gmail.com

Abstract

This paper investigates the impact of Sustainable Forest Management (SFM) practices on primary timber-based production in Peninsular Malaysia that is complying with the SFM practice scenarios. The Autoregressive Distributed Lagged (ARDL) Bounds Testing Approach have been used to analyze time series data from 1980 to 2012. Four scenarios were investigated: (i) 24% reduction in the harvested area, (ii) 25%increase in the domestic price of commodities, (iii) 47%increase in input costs, and (iv) a combination of Scenarios i, ii, and iii. The results reveal that sawn timber production is positively affected by the SFM practices; these practices vary between veneer and plywood production. Consequently, the producer can enhance sawn timber production after imposing the SFM practice scenario. The SFM practice scenario would generate the sustainable growth of the timber-based industry and help to enhance Peninsular Malaysia’s forest conservation goals.

Keywords

Autoregressive Distributed Lagged (ARDL); plywood; sawn timber; Sustainable Forest Management Practices; veneer

Author’s Acknowledgement

The authors are thankful for the research grants Fundamental Research Grant Scheme (FRGS) under the Ministry of Education, Malaysia (Project Code: FRGS/1/2016/SS08/UPM/02/4). Grateful thanks to the anonymous reviewers for the valuable comments that helped to considerably improve the manuscript.

http://dx.doi.org/10.17576/JEM-2017-5001-12
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Noraida, , Abdul-Rahim, , & Othman, (2017). The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia. Jurnal Ekonomi Malaysia, 51(2), 143–154. http://dx.doi.org/10.17576/JEM-2017-5001-12

@article{noraida2017impact,
  title={The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia},
  author={Noraida, A.W. and Abdul-Rahim, A.S. and Othman, Mohd},
  journal={Jurnal Ekonomi Malaysia},
  volume={51},
  number={2},
  pages={143—154},
 

year={2017},
}

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