Forest Resources in the Performance of Mexican Community Forest Enterprises in a Vertical Integration System

Abstract

The objective of the research was to analyze the relationship between the use and control of forest resources as measured by volume sold (m3/year), volume harvested (m3/ha), and timber production area under forest management (ha) and the performance as measured by profits ($/m3) of community forest enterprises in Mexico under a vertical integration system, from perspectives theory of the firm and new institutional economics. The study is based on an analysis of data from a sampling of 30 enterprises in 12 states in the country in 2011. The research hypothesis states that the use and control of forest resources is positively associated with the profits of the enterprises. The study used linear regression to test the hypothesis. The study concludes that for the sample, the volume harvested m3/ha, was associated positively and significantly with harvesting profits $/m3. Whereas, the timber production area (ha) and volume sold m3/year were associated positively, but not significantly with profits $/m3 of enterprises. At the group level, the volume harvested m3/ha was positively associated with harvesting profits ($/m3) of type III (timber growing and harvesting) enterprises, while volume sold (m3/year) was associated positively with harvesting profits ($/m3) of type IV (vertically integrated timber growing through sawmilling) enterprises. The statistical results were not significant. This suggests no definite conclusions can be made on the general and by size, use and control of forest resources regression results. However, the results are a first approach to understanding the performance of enterprises vertically integrated under a structure of communal government.