Title page for ETD etd-6998-15445

Type of Document Dissertation
Author Grebner, Donald L. II
Author's Email Address dgrebner@usit.net
URN etd-6998-15445
Title Analysis of Policy Reforms in the New Zealand Forest Manufacturing Sector
Degree PhD
Department Forestry
Advisory Committee
Advisor Name Title
Amacher, Gregory S. Committee Chair
Bigsby, Hugh Committee Member
Cothren, Richard D. Committee Member
Sullivan, Jay Committee Member
Wisdom, Harold W. Committee Member
  • Stochastic Frontier
  • Cost Efficiency
  • Deregulation
  • Privatization
  • Econometric Analysis
  • New Zealand
Date of Defense 1998-04-10
Availability unrestricted
New Zealand experienced dramatic restructuring programs

after the Labor party won the national elections in 1984.

Deregulation of price controls, removal of the log export

ban, and privatization of public assets were the main

shocks to the forest sector. The purpose of this paper is

to analyze the impacts of these reforms on wood and paper

industry cost, production, and cost efficiency. Unlike

previous work, the effects of privatization and deregulation

are compared to determine which shock had the most

influence on the forest sector. Results show that

production decreased, total cost increased, and cost

efficiency decreased after deregulation for the sector,

and that deregulation was more significant than

privatization for the wood and paper sectors. In

particular, removal of the log export ban had the greatest

impact, while privatization had little effect on industry

production and cost. This suggests that countries with

comparative advantages in wood processing who implement

deregulation or privatization may suffer through a short

term period of lower cost efficiency as the economy

adjusts to higher input costs in those sectors. In

New Zealand's case, the adjustments most likely affecting

efficiency have been investments in new technologies,

which require time to attain maximum efficiency. The

results are contrary to other studies that have predicted

increased efficiency as a result of privatization.

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