Alabama Forest Products and the Potential Impacts of FTAA Price Changes

Malki, Mostafa; Thompson, Henry; Yeboah, Osei-Agyeman

doi:2010.25.1.130

The Journal of Economic Integration 2010 March;25(1) :130-143.
DOI: https://doi.org/10.11130/jei.2010.25.1.130

Alabama Forest Products and the Potential Impacts of FTAA Price Changes

Mostafa Malki, Henry Thompson, Osei-Agyeman Yeboah,

University of Texas - Brownsville
Auburn University
North Carolina A&T State University

ABSTRACT

The Free Trade Area of the Americas FTAA will increase import competition for some forest product industries in Alabama but create export opportunities for others. Forest products loom large in the Alabama economy, both in terms of income and pollution. The present paper gauges the potential impacts of a range of price changes for forest products in an applied specific factors model of production. Pollution adjusts with forest product outputs. The potential impacts on outputs, capital returns, and pollution are substantial. Anticipated price changes also raise the wage and lower energy demand.

JEL Classification:

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