%0 Article %T Forestry and the timber economy in economic development. %A Riihinen, Päiviö %D 1981 %J Silva Fennica %V 15 %N 2 %R doi:10.14214/sf.a15058 %U https://silvafennica.fi/article/5117 %X

The article deals with differences in economic growth in different countries and regions and with reasons for these differences. The central role in investments in economic growth and the mechanism of its differentiation are elucidated. The properties of forestry and the forest industries in equation or differentiating economic growth are considered. In the light of the theories of regional differentiation, the mere production of raw material in some region tends to increase differences in economic development if that raw material is processed in some other region – despite the fact that the level of income rises in both regions. It is therefore desirable that afforestation projects in the development countries are accompanied by the development of the forest industries.

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