%0 Research article
%T Substitution in the Finnish forest industry’s roundwood procurement
%A Hautamäki, Sanna
%A Mutanen, Antti
%A Viitanen, Jari
%D 2012
%J Silva Fennica
%V 46
%N 3
%R doi:10.14214/sf.51
%U https://silvafennica.fi/article/51
%X In this study, the interaction and substitution between domestic and  imported roundwood in the Finnish forest industry’s wood procurement is  analysed by timber assortments. The results from the translog cost  function approach and quarterly data of the total wood procurement and  its components during the euro regime indicate that, to a certain  extent, the Finnish forest industry has had the possibility of  substituting imported roundwood volumes between countries in the Baltic  Sea region. Contrary to earlier studies, also in the case of Russian  birch pulpwood, the most important imported timber assortment, the  results suggest that Russian birch pulpwood has rather substituted for  than complemented the domestic supply in Finland. The increase in  roundwood export duties in Russia has had a statistically significant  effect on the trade in birch pulpwood and spruce sawlogs.  Moreover, the  results confirm the earlier findings of a rigid demand for roundwood in  Finnish roundwood markets.