Linkage between forest cover and trade in forest products: an empirical evidence from BRICS and EU nations

The present research aims at analyzing the determinants of trade in forest products across BRICS and EU nations by using forest cover as one of the determining factors. For this purpose, a gravity model has been utilized for the country panel of BRICS and EU from 1996 to 2020. Five product categories corresponding to the forest trade (at HS-2 level) have been considered for the analysis. Further, Poisson pseudo maximum likelihood method has been used to estimate the gravity model. The study found that the forest cover of the trading nations from BRICS and EU has affected bilateral exports of primary wood products, wood pulp products, and related items significantly. The control variables included in the gravity model have resonated the results of existing literature. The study provides good policy insights on promoting trade in forest products by adopting appropriate forest conservation policies and other interventions that can help countries in increasing their respective forest covers.