Impacts of economic reforms on rural forestry in China

This paper addresses the effects of economic transition policies on forestry in China. The effects of de-collectivization and market liberalization on the forest land area and timber harvest are studied using panel data from four provinces covering the period 1978–1995. Fixed effects ordinary least squares models for forest land cover and annual harvests per hectare are estimated, allowing for differences across provinces and prefectures in northern and southern China. The results show that land tenure reform in general has had a positive effect on forest land expansion, but the absolute size of the effects varies from province to province. The positive impact of the reform on timber harvesting has not taken place at the cost of forest land cover. The claim that market liberalization leads to over-harvesting of forest resources in developing countries is not supported by our results.