Economic Trends in the Timber Industry of the Brazilian Amazon: Evidence from Paragominas

CREED Working Paper 6

Posted: 20 Nov 1996

See all articles by Steven Stone

Steven Stone

Instituto do Homem e Meio Ambiente da Amazonia (IM

Date Written: July 1996

Abstract

The timber industry of the Brazilian Amazon is changing rapidly. From a slowly evolving base of extraction in the estuary areas, the industry has expanded along an extensive road network straddling upland forests. This research examines the changes in the economic profile of timber extraction and processing in an old frontier area of Brazil, the county of Paragominas in the Eastern Amazonian state of Para. As one of the earliest centres of upland logging in the Amazon, its experience after twenty years offers insights to the development of the industry as it spreads to other regions of the basin. This paper presents a theoretical model of industry evolution in frontier areas and analyzes industry response in Paragominas to local shortages in raw material, rising international wood prices and increasingly stable property rights.

JEL Classification: Q23, L73

Suggested Citation

Stone, Steven, Economic Trends in the Timber Industry of the Brazilian Amazon: Evidence from Paragominas (July 1996). CREED Working Paper 6, Available at SSRN: https://ssrn.com/abstract=4452

Steven Stone (Contact Author)

Instituto do Homem e Meio Ambiente da Amazonia (IM ( email )

Caixa Postal 1015
Belem
Para 66017-000
Brazil
55 91 235 4214 (Phone)
55 91 235 4214 (Fax)

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