Development of the Roundwood Import Prediction Model

This study developed the Korean roundwood import prediction model using vector autoregressive (VAR) method. The roundwood was divided into softwood and hardwood by species. The VAR model of roundwood import was specified with two lagged endogenous variables, that is, roundwood import volume and roundwood import price. The results showed that the significance levels of F-statistics in the softwood and hardwood roundwood import equations rejected the hypothesis that all coefficients are zero. So, we concluded that roundwood import volume can be explained by lagged import volume and lagged import price in Korea. The coefficient signs of all variables were as expected. Also, the model has good explanatory power, and there is no autocorrelation.