@article{Hietala:199445,
      recid = {199445},
      author = {Hietala, J. and Hanninen, R. and Toppinen, A.},
      title = {Finnish and Swedish Sawnwood Exports to the UK market in  the EMU regime},
      journal = {Scandinavian Forest Economics: Proceedings of the Biennial  Meeting of the Scandinavian Society of Forest Economics},
      address = {2012-05},
      number = {1333-2016-103860},
      pages = {2},
      year = {2012},
      abstract = {The business environment for sawnwood producers based in  the traditional forest-industry
countries of the boreal  zone has changed dramatically in the last decade. Among the  greatest
changes is the establishment of the European  Monetary Union (EMU). However, the effect of
the associated  exchange rate changes on international forest-industry  trade in European markets
has not previously been examined.  The present study attempts to fill this gap by analyzing  the
effects of currency movements on Finland’s and Sweden’s  competitiveness in the international
sawnwood market.  Johansen’s multivariate cointegration method was applied  for formulation of
the separate partial equilibrium model  systems for bilateral trade flows from Finland and
Sweden  to analyze pricing of sawn softwood for the UK market in  1995–2008. Rather than
competitive markets, our findings  indicate the existence of price discrimination and  market
power on the part of exporting firms. The results  show that Finnish exports have been greatly
affected by the  currency movements between euros and British pounds in the  UK market.
Furthermore, the estimated values for  exchange-rate pass-through coefficients indicate  that
Finnish exporters have passed on some of the exchange  rate changes between these currencies
to the UK customers.  This result is in line with similar estimations for the  period before the
EMU. The present estimates show a  slightly lesser degree of exchange-rate  pass-through,
possibly suggesting transition towards a more  competitive environment in the UK’s sawn
softwood market.},
      url = {http://ageconsearch.umn.edu/record/199445},
      doi = {https://doi.org/10.22004/ag.econ.199445},
}