Demand and supply analysis of pulp for paper making in Thailand
1994
Nantana Sitharot
Due to the expansion of demand of paper, domestic pulp which was the most raw material for producing paper was the insufficient. So, the big amount of import was necessary. The objective of this study were to study the process of production, marketing and consumption of pulp including factors affecting demand for and supply of pulp of Thailand by using simultaneous equation system and estimation by two-stage least squares method. The results of study showed that the supply elasticities of Thai pulp with respect to domestic price of pulp, import price of short-bleached fiber long fiber and waste paper with respect to import price of the above pulps were -1.7051, -0.9818 and -0.2874 respectively. The elasticities of demand for printing paper with respect to import price of long fiber and per capita Gross National Product were -1.11 and 0.7127 respectively. The elasticities of domestic demand for kraft paper with respect to domestic price of pulp, waste paper and per capita GNP were -1.7222, 1.1852 and 2.2875 respectively and the elasticities of demand for newsprint paper with respect to domestic price of pulp, waste paper and per capita GNP were -0.3314, 0.4492 and 0.3843 respectively.
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