Wood Chips and Regional Development

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Abstract
The impact of a wood-chip project on the regional economy is examined using data from an input-output analysis of the Western Australian economy. Wood-chip projects have extensive linkages with other industries, particularly in the transport sector. The total employment created by a wood-chip project is probably double the direct employment in the project itself. The impact on regional income compares favourably with other primary industries and the ratio of export to import content is extremely favourable to the balance of payments. These features make a wood-chip project particularly desirable in a depressed area or a less developed region. The extension from export of wood-chips to export of pulp is briefly examined and some of the problems relating to markets and scale of industry are discussed.

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