Market and non-market determinants of roundwood exports from Cameroon: Implications of global trade on sustainable forest management

Africa south of the Sahara is endowed with forest assets which give the continent a comparative advantage in the trading of timber and other forest products. Countries at the 26th COP of the UNFCCC pledged to take steps to secure tropical forest assets against deforestation in countries on the frontiers of the Congo Basin such as Cameroon which are strategically positioned to optimise forest land-use for its global good imperative. However, comprehensive information is absent on the market and non-market drivers of roundwood timber exports. This study examines the economic determinants of roundwood exports from an archetypical African economy of Cameroon, and ascertains whether the reliance on few species for the export market has some implications on the environment and in the overall process of sustainable development. Secondary data is employed covering the period 1960-2020, to estimate an Error Correction Model (ECM) relating timber export value and economic factors. The results reveal that high timber prices may increase the quantity of exports. Similarly, better infrastructure, higher relative demand from Asian countries led by China, increase in area harvested of major species and incomes in importing countries in the European Union (EU) and United States of America (USA) may stimulate increased exports. On the contrary, however, increase in the prices of substitutes, higher exchange rates, higher export taxes, higher domestic consumption levels, and increased illegal exports may have a negative correlation with export receipts. Geographic diversification of roundwood to the EU and non-EU markets is shown to be significantly determined by market access factors. These findings are argued to have profound implications on the management of forest assets for sustainable development.