Modelling Analysis of Forestry Input-Output Elasticity in China

Abstract

Based on an extended economic model and space econometrics, this essay analyzed the spatial distributions and interdependent relationships of the production of forestry in China; also the input-output elasticity of forestry production were calculated. Results figure out there exists significant spatial correlation in forestry production in China. Spatial distribution is mainly manifested as spatial agglomeration. The output elasticity of labor force is equal to 0.6649, and that of capital is equal to 0.8412. The contribution of land is significantly negative. Labor and capital are the main determinants for the province-level forestry production in China. Thus, research on the province-level forestry production should not ignore the spatial effect. The policy-making process should take into consideration the effects between provinces on the production of forestry. This study provides some scientific technical support for forestry production.