Forest plantation development, poverty and inequality in Laos: A dynamic CGE microsimulation analysis
Based on:
Journal Article (2020)
This article tries to develop a novel approach, a new economic model, in order to assess Lao government policy regarding forestry management.
Brief by:
Research collaborators:
Content
This study is a novel approach to assessing the impact of forestry policies and to help devise plantation development policies. While economic models to assess impact already exist, before this research there had been no assessment of the effectiveness of these models. In this sense, it is a contribution to forestry as a science.
Key findings
The results revealed that overall plantation development would have a favourable impact on the economy.
But there would be some negative impacts on sectors with few or no linkages to the forestry sector.
Welfare and income inequality would increase while poverty incidence would decrease.
Proposed action
For people trying to use the newly created model, they have to first understand and study the mathematics behind it
The legal framework surrounding the forestry and plantation sectors has been and needs to be significantly improved
The government needs to design policy that supports local smallholders, actors of the forestry sector, and that allows investors to come in more quickly, so that the value creation of the sector can be increased
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Acknowledgements
Thank you to ASEAN
These insights were made available thanks to the support of ASEAN, who are committed to the dissemination of knowledge for all.
Special thanks to Antoine Germain for preparation assistance
We would like to extend a special thank you to Antoine Germain, for their invaluable contribution in assisting the preparation of this research summary.
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Forest plantation development, poverty and inequality in Laos: A dynamic CGE microsimulation analysis
Cite this brief: Phimmavong, Somvang. 'Forest plantation development, poverty and inequality in Laos: A dynamic CGE microsimulation analysis'. Acume. https://www.acume.org/r/forest-plantation-development-poverty-and-inequality-in-laos-a-dynamic-cge-microsimulation-analysis/
Brief created by: Professor Somvang Phimmavong | Year brief made: 2022
Original research:
- R. K., & Phimmavong, S., ‘Forest plantation development, poverty and inequality in Laos: A dynamic CGE microsimulation analysis’ 111 https://doi.org/10.1016/j.forpol.2019.102055. – https://www.sciencedirect.com/science/article/abs/pii/S1389934119303387
Research brief:
This article tries to develop a novel approach, a new economic model, in order to assess Lao government policy regarding forestry management.
This study is a novel approach to assessing the impact of forestry policies and to help devise plantation development policies. While economic models to assess impact already exist, before this research there had been no assessment of the effectiveness of these models. In this sense, it is a contribution to forestry as a science.
Findings:
The results revealed that overall plantation development would have a favourable impact on the economy.
But there would be some negative impacts on sectors with few or no linkages to the forestry sector.
Welfare and income inequality would increase while poverty incidence would decrease.
Advice:
For people trying to use the newly created model, they have to first understand and study the mathematics behind it
- They have to understand the statistical methods used, the metrics, the values. So, for them, it is important to study the model.
The legal framework surrounding the forestry and plantation sectors has been and needs to be significantly improved
The government needs to design policy that supports local smallholders, actors of the forestry sector, and that allows investors to come in more quickly, so that the value creation of the sector can be increased