ABSTRACT
This chapter considers the impact of trade policy intervention, in particular the application of export restrictions, in the forest products sector from the viewpoint of New Zealand, with an emphasis on the effects intervention on the level of domestic processing and welfare. The issue of restricting exports of logs in order to increase the level of domestic processing is a long-standing one in New Zealand. Export restrictions may act as a mechanism for transferring income from foreign to domestic interests. The chapter considers the fact that much of the New Zealand forestry resource is now owned by foreign interests. There is considerable scope for work in extending the Global Trade Analysis Project (GTAP) model's treatment of the forestry and wood processing industries. It would also be worthwhile to incorporate a more realistic differentiation of hardwood and softwood into the model.
