Studies On China Sawn Wood Imports And Its Demand Elasticity

Before the implement of a series of key projects, timber supply of raw materials mainly are from natural forest resources in China, and after the implementation of key projects, the domestic timber supply of raw materials has been hit. With the rapid development of Chinese economics, wooden furniture industry booms, which increases the demand of timber in our country. But the log is primary product, which is limited to countries such as Russia because of forestry policy, so China increases the demand of the sawn timber, and our country has become the world’s largest importer of the wood which increases the gap between supply and demand of sawn timber in our country. Chinese sawn timber mainly depends on foreign markets as the domestic demand for lumber in China is insufficient. China has different structure of sawn timber demand from different countries. But in recent years, with the destruction of the global environment, the developed countries begin to make a series of forestry policy to protect the environment, such as lacey act amendment of the United States, the European Union timber bill, forest certification, anti-dumping, infringement and so on, leading to international timber supply uncertainty, hindering our country lumber imports. Based on the above background, the paper studies the sawn timber international trade theory, analyzes the present situation of the lumber import in our country, the development course, sawn timber structure, the relationship between our country lumber and wood furniture, as well as the relationship between the other wood substitutes. Then on the basis of the demand function and demand elasticity theory, by using LA/AIDS model, the paper analyzes the sawn timber demand elasticity, calculates the self price elasticity coefficient, expenditure elasticity coefficient and cross price elasticity coefficient, which can analyze sawn timber income level and price to the influence of the lumber import demand in China, whether the relationship between the eight major importers is competition or complementary,. At last, according to the calculation results, paper makes a summary, put forward the measures and suggestions on sawn wood imports in China.