Articles containing the keyword 'economy'

The purpose was to analyse the importance of forestry and forest industry in the Finnish economic development since the 1950’s, and to find out how the sector has contributed to the growth of the national economy through other sectors. Data were derived from the input-output tables of 1959, 1970 and 1980. Information provided by Hirschmanian linkages was expanded by taking into account e.g. induced, consumption, final demand and absorption linkages. The linkages of forestry and forest industry had multiplied during the study period. Both final demand linkages and intermediate product linkages were significant. The sector’s contribution to the development of metal and machinery and equipment industries as well as that of energy/water supply was significant. Integration with most other sectors has increased. Indirect production coefficients of forestry and forest industry were larger than on average in manufacturing. Because of labour productivity growth, production and employment coefficients were different.

The PDF includes an abstract in Finnish.

• Haltia, E-mail: oh@mm.unknown
• Simula, E-mail: ms@mm.unknown

This paper is a theoretical study of what is considered to constitute the proper perception of time in forest economics and management. A stumpage appraisal model that recognizes the influence of time is developed within the framework of a national aggregate economy. To demonstrate how a socially optimal land for timber production may be determined in a given nation, a stock-supply model is derived. The stumpage appraisal rule of development determines the market stumpage price that maintains a state of balance between timber production and other land use activities.

The PDF includes an abstract in Finnish.

• Omwami, E-mail: ro@mm.unknown

Sawmilling and Carpentry, Forestry and Hunting, and Food Grains are the economic sectors compared in this study by means of the total input-output coefficient. The coefficient measures the value of direct and indirect demand in the economy caused by a demand worth one monetary unit on the sector in focus. Forestry sector has the weakest linkage to other sectors. The derived coefficients are 1.693 for Sawmilling and Carpentry, 1.183 for Food Grain and 1.167 for Forestry and Hunting.

The PDF includes a summary in Finnish.

• Koljonen, E-mail: kk@mm.unknown

The Finnish Government appointed a committee in 1955 to analyse the economic status of the population living from agriculture. The present paper contains Part II of the proceedings of this committee. It discusses the earnings of the agricultural population from forestry and occasional work.

Agricultural population was defined as all people living from holdings of at least 2 hectares of agricultural land. Forestry income includes, besides the value of stumpage sold, earnings from logging in connection with delivery contracts. Earnings from occasional work include wages for logging made to the account of someone else, as well as wages for agricultural work, floating, carpentry, road construction and maintenance work etc.

In 1951–1954, the farms in Finland received an average aggregate of 29 milliard Fmk for stumpage, 10 milliard Fmk of which consists of the value assigned to the timber consumed by the farms themselves. The average income from stumpage was 110,000 Fmk per farm. The earnings from logging in connection with delivery contracts amounted to 3.3 milliard Fmk, and the earnings from occasional work to 6.7 milliard Fmk. The income from stumpage together with the earnings from delivery loggings amounted to 123,000 Fmk per farm. Adding the earnings from occasional forest work, an aggregate forestry income of 150,000 Fmk per farm has been obtained, 70–75% of which accounts for stumpage price.

The occasional earnings from sources other than forestry were on average 12–13 milliard Fmk, or 45,000–50,000 Fmk per farm. The agricultural income of the farms was 60.4 milliard Fmk, or 230,000 Fmk per farm. Thus, the aggregate income of the farms was 110 milliard Fmk, or 420,000 Fmk per farm.

The financial surplus from forestry per farm for the farms included in the study in 1951–1954 was on average 21, and the income from forestry 18 times as high as in 1934–39. The income from stumpage at the end of the same period was 18, and the earnings from occasional work 27 times as high as at the beginning of the period.

The agricultural income has the greatest relative importance in Southern Finland and Eastern Bothnia. The income from stumpage, in turn, has the greatest relative significance in supporting agriculture in the inner part of Finland, while the occasional income plays its most vital role in northeast Finland.

The PDF includes a summary in English.

• Maatalousväestön taloudellista asemaa selvittävä komitea, E-mail: –

Silva Fennica issue 42 includes presentations held in professional development courses, arranged for foresters working in public administration in 1936. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service

This presentation describes the revenue and expenditure of rural municipalities and the impact of forestry in their economy.

• Kilpiö, E-mail: ak@mm.unknown

Silva Fennica issue 42 includes presentations held in professional development courses, arranged for foresters working in public administration in 1936. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service

This presentation describes the relationships between forestry and agriculture in the national economy of Finland.

• Jutila, E-mail: kj@mm.unknown

The purpose of this study is to reveal the links between farm forestry and its economic and social environment. The second-stage factor analysis used was based on factor scores per municipality, representing the dimensions of total farm operation and of its economic and social environment. The population was 17 municipalities or groups of municipalities in the South Karelian Forest Board district.

The conclusions of the results are directly applicable only to the ideal types presented. A socio-economic environment marked by industrialization detrimentally affects both the standard of forest management, as assessed subjectively by field workers, and the productivity of logging, as measured by labour input/m³ of output. This finding holds good even despite the modernization of forest management indicated by the adoption of renewal cuts.

The clearest negative factor for forestry is the irrational distribution of forest holdings. This impedes the rationalization of forest management and the efficiency of loggings. Extensive scattering of forest holdings also delays the mechanization of logging. The spread effects of industrialization relate to a higher level of forest management and labour productivity of logging. Family farming links up closest with features that enhance the importance of the forest to the farmer. Such features include regularity and size of delivery cuts.

Centralized agriculture, mainly village settlement areas, displayed the poorest forest management. Problem farms are typified by small farm units, unemployment and a low degree of forest management.

The PDF includes a summary in English.

• Hahtola, E-mail: kh@mm.unknown

The study links up with the general development of logging on private farm woodlots, practiced by the Work Efficiency Institute (Työtehoseura). It is based on the idea that the promotion of forest management on farms should be integrated with general agricultural development. The aim of the study was to find out the relation between delivery cuts and management of the farm as a whole, including economic and social environment. The first, methodological part develops a model representing farming, based on factor analysis. The second part tests the applicability of the factor analysis in the light of the empirical data, and studies the relation between delivery cuts and total farming and regional differences in farming.

Despite the descriptive nature of the factors obtained, the solution permitted a multi-dimensional examination. It seems that certain aspects typical to scattered settlement accentuate the importance of the forest for the farm. These include a high ratio of forest to arable land, barren soil and forest holdings that form unbroken tract of land. The importance of forestry is accentuated by the self-sufficiency of farms in labour and tractive power. On the other hand, there were lines of production and forms of livelihood and land utilization that compete with forestry, such as off-farm employment and alternative forms of land-use. One factor indicative for small importance of forestry for the farms was the small size in ratio to arable land. Often money for machinery has come from forest revenues.

The factor analysis indicate that a rational parcelling of forest holdings leads to better cutting methods. Also, cutting method improve and the proportion of renewal cuttings increase on moving from remote areas towards population centers. Productivity of delivery cuts is affected by the total employment of labour and tractive power on the farm. Abundance of labour and the use of farm’s own labour are probably detrimental to the productivity of delivery cuts. When the farms grow, the increase in the quantity felled and the rise in the degree of mechanization favour productivity.

The PDF includes a summary in English.

• Hahtola, E-mail: kh@mm.unknown

This investigation studies the significance of forest income to the economy of a farm in Finland. It concentrates on the relationship between monetary income from forestry and the capital of the farm, especially from the viewpoint of investments made in the agriculture. The material is based on results of the accounting holdings of the National Board of Agriculture between the financial years 1925-1926 and 1936-1937.

The study shows that there is a high correlation between farm’s monetary investments and changes of deposits, and changes in the monetary income of forestry. The changes in depts seem not to be as closely related to forest income as could be expected. The most important role of forestry income in farm economy is financing the investments, i.e. operations that aim at developing and rationalizing farming and making it more profitable. In many parts of the country, the investments would have remained low without income from forestry. Income from cuttings provides usually a relatively large sum on a single occasion, which is easier to use to finance a large investment compared to a smaller regular income. The needs of agriculture may, however, lead to overcutting of the forests.

The PDF includes a summary in German.

• Piha, E-mail: ap@mm.unknown

Finnish municipalities can be classed in towns and cities, market town and rural communes. In 1942 there was 27 market towns in Finland. The aim of this study was to investigate the amount and state of forests in market towns. The data was collected mainly by interviewing the authorities of the market towns in 1936-1938. The statistics about forests were often insufficient.

The total land area owned by market towns was 8,963 ha, 71.7% of which was forest land, 12.0% wasteland and 16.3% arable land. A total of 21 of the 27 market towns own forest. Of all the land owned by the market towns about half is situated within borders of the town, however, 57% of the forest land is situated outside the market town itself. The forest areas are small, only four towns own more than 500 ha of forests, and only six has a forest management plan. The silvicultural state of the forests seems, however to be relatively good.

The PDF includes a summary in German.

• Rautvuori, E-mail: er@mm.unknown

According to the 1st national forest inventory of Finland, municipalities owned 178,000 hectares of forests in 1922, about 0.7% of the total forest area of the country. Only 60,000 hectares of these belonged to urban municipalities. The amount had increased to 73,000 hectares by 1938. Although the area was small, forests were important for municipal economy. The aim of this study was to investigate the state and forest management practices of forests in urban municipalities. The data was collected mainly by interviewing the authorities of the municipalities in 1936-1938.

Forests covered 50-80% of the area of the urban municipalities, the total area varying from 111 hectares to 7,791 hectares. Only four municipalities owned more than 5,000 hectares of forests. Annual profit of forestry in all urban municipalities totalled about 4.6 million Finnish marks in 1931-1935. Quality of productive forest lands was relatively good, but the volume and growth of the forests rather low. The silvicultural state of the forests could be improved. The article points out that this requires continuous planning. The basis of this is forest management plan, which has been demanded of municipal forests since 1893. However, some of the urban municipalities still lacked a forest management plan, or it was not fully used in forest management.

The PDF includes a summary in German.

• Linnamies, E-mail: ol@mm.unknown
• Rautvuori, E-mail: er@mm.unknown

Only fifth of the farms in Finland had no forests in 1936. Forests have been important for the economy of the farms by providing household timber and income from timber sales. However, forests have not been taken into account in the profitability studies of agriculture. The article analyses the revenues of forestry in private farms, and the different sources of revenue. The revenue is examined in farms of different sizes, different parts of the country and in different financial years in the period of 1925-26‒1936-37.

Forest holdings smaller than 25 hectares give relatively small financial support to the farm economy. Household timber saves costs, and timber sales can give opportunities to investments. The revenue given by bigger forest holdings are, however, important items in the income statement. Finally, the results are compared to profitability studies in other countries.

The PDF includes a summary in German.

• Piha, E-mail: ap@mm.unknown

The article contains three parts and a summary. The first part presents the common foundations of forest economics and forest management.  The second part critically discusses the concept of sustainability and the third part takes critical view on the theories on profitability.

The author concludes by stating that the literature shows there are some old principles of forest management that always arise when the forest science progresses. The economics of forest management has been neglected in the sense that it should be acknowledged as self and not as mathematical problem as it has been handled in many theories of national economy, e.g. land rent theory. The science seems the turn back to previous findings as they are proved right again.  

The PDF contains a summary in German.

• Hagfors, E-mail: eh@mm.unknown

Private forests account for about 2/3 of the growth of the forests in Finland, but little is known about the economy of forestry in private farms. The study analyses the forestry in private farms using accounting data of farms, collected in a survey of profitability in agriculture that was compiled by the Board of Agriculture. The sample of 18 farms represent farms where the use of forests was sustainable. The accounting data was complemented by survey of forest recourses in the farms. The typical forest site type is Myrtillus type, and the average growing stock is 96‒136 m³/ha which is above the average of the private forests. Fellings exceeded the growth of the forests in some farms, but this was compensated by uncommonly large forest resources. In average, growth exceeded the fellings. Timber accounted for most of the sales, while fuel wood sales exceeded the pulpwood sales. The significance of thinning seems not be fully understood in the farms. Especially standing sales of timber was important for the economy of the farms.

The PDF includes a summary in German.

• Hildén, E-mail: nh@mm.unknown

The article has two parts: the first are the common principles of forestry and forest economics and the second part presents different theories of forest economics. The aim of the study is to find out how the best possible economic result can be achieved from forest management and use of forest resources.

The first part presents the economic foundations of forestry; the division between following the concept of economic profitability in forestry and forest management; concepts of capital and operating result in forestry; and productivity and profitability. It discusses the idea of economy as a dynamic entity instead of static.

In the second part the different economic theories related to forestry and forest economics are presented. Theory on the highest interest on forest capital, theory of sustained yield management system, land rent theory, theory on forest profitability and dynamic economic theory are discussed.      

• Hagfors, E-mail: eh@mm.unknown

In 1926 the state of Finland payed taxes to the local municipalities from a half of the net returns the state forest and state owned wood manufacturing industry produced. The taxes payed by the forest administration to the municipalities totaled 4.75 million Finnish marks. The state forests are located mostly in Northern Finland, thus the relative amount of municipalities that get taxes from the state forestry were higher in the north. The municipalities that benefited most from the tax revenues from the state were Savukoski, Pudasjärvi, Suojärvi, Rovaniemi, Taivalkoski, Kuhmoniemi, Turtola, Pielisjärvi, Ilomantsi, Korpiselkä and Suistamo. About half of the municipalities (264) got tax revenues from state forestry. However, if this tax revenue was removed, it would raise local tax rate in relatively few municipalities. it has been proposed that state should pay taxes from the state forests on the same principles as the private forests. To move to area based taxation in the state forests would, however, increase the taxation of the state five-fold. The taxes from the state forests are not appropriate way to support the poorest municipalities. Better suited would be, for instance, state subsidies. Therefore, the taxes payed from the state forestry to municipalities should be abandoned.

The volume 34 of Acta Forestalia Fennica is a jubileum publication of professor Aimo Kaarlo Cajander. The PDF includes a summary in German.

• Lakari, E-mail: ol@mm.unknown

The article is a survey about the economic situation of the farms in the northernmost Finland, commissioned by the senate of Finland. Agriculture practiced in Northern Finland has differed markedly from the rest of the land. The farms were small and pioneer farming was common. The lands were predominantly owned by the state which had assigned wide areas for new settlements in the area. The article includes a detailed survey of 154 farms in the area. Statistics of different categories of capital is listed; stock, equipment, land, and domestic animals, in addition to overview on the different types of farms in the area.

The PDF includes a summary in German.

• Jutila, E-mail: kj@mm.unknown

One of the central goals of circular bioeconomy in the Finnish forest-based sector is upgrading the use of wood-based materials, especially wood-based side streams, to higher value-added products. However, despite these ambitions, most wood-based side streams are used in energy production. Within the forest-based sector, innovative solutions for higher value-added production of wood-based side streams are being developed within small and medium-sized companies (SMEs). Therefore, to promote the process of upscaling these solutions, understanding the success of these companies is pivotal. For this end, we conducted a qualitative study with 10 forest-based SMEs utilizing wood-based side streams to understand both the internal and external factors affecting their ability to scale up their business models. By applying the dynamic capabilities approach from management research and the strategic niche management approach from sociotechnical transition studies, we found that even though the companies are internally well positioned to succeed in their growth aspirations, they face barriers from the dominant forest-based regime. The studied SMEs are facing a mismatch between their own business models and the rules and operating principles of the forest-based sector based on linear economy. Overcoming these barriers and challenging the dominant structures within the Finnish forest-based regime would require joint efforts from the companies. However, the companies have a strong technological orientation, which makes them hesitant with regard to horizontal networking. They also operate in diverse markets, making it difficult for them to find common ground. As a result, the pressure for systemic transformation within the forest-based sector remains nominal.

• Kuhmonen, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland https://orcid.org/0000-0002-1407-8349 E-mail: irene.a.kuhmonen@jyu.fi
• Näyhä, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland E-mail: annukka.nayha@jyu.fi
• Solaranta, University of Jyväskylä, School of Business and Economics, P.O. Box 35, FI-40014 University of Jyväskylä, Finland E-mail: miisa.solaranta@gmail.com
• Keränen, VTT Technical Research Centre of Finland Ltd, P.O. Box 1603, FI-40101 Jyväskylä, Finland https://orcid.org/0000-0002-5626-2929 E-mail: janne.keranen@vtt.fi

• Laakkonen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland; Department of Forest Sciences, Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27, 00014 University of Helsinki, Finland https://orcid.org/0000-0002-6384-7773 E-mail: anu.laakkonen@uef.fi
• Rusanen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland https://orcid.org/0000-0003-1705-5561 E-mail: katri.rusanen@uef.fi
• Hujala, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland https://orcid.org/0000-0002-7905-7602 E-mail: teppo.hujala@uef.fi
• Gabrielsson, Department of Marketing, Hanken School of Economics, P.O. Box 479, FI-00101, Helsinki, Finland; UEF Business School, Faculty of Social Sciences and Business Studies, University of Eastern Finland, P.O. Box 1627, FI-70211 Kuopio, Finland https://orcid.org/0000-0002-0633-6918 E-mail: mika.gabrielsson@uef.fi
• Pykäläinen, School of Forest Sciences, Faculty of Science, Forestry and Technology, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: jouni.pykalainen@uef.fi

• Kniivilä, University of Joensuu, Faculty of Forestry, P.O. Box 111, FIN-80101 Joensuu, Finland E-mail: matleena.kniivila@joensuu.fi
• Saastamoinen, University of Joensuu, Faculty of Forestry, P.O. Box 111, FIN-80101 Joensuu, Finland E-mail: os@nn.fi