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Abstract:
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"This study empirically investigates how tropical forests contribute to rural economies by using household survey data to understand patterns of local forest use on Siberut, Indonesia. We use household production theory to build a model of forest products collected on Siberut as a function of labour, tools, forest condition and household classes. Five forest products rattan, sago, and wood for construction, carpentry and fuel are combined into a composite forest product using market prices as weights. Four classes of households are identified through cluster analysis of assets, including land, livestock, productive equipment and consumer durables. The parameters of the estimated forest production functions are consistent with underlying theory and statistically significant. Labour allocated to forest product collection has the greatest overall influence. In turn, labour allocation is significantly influenced by household composition and socio-economic factors. We also find that forest quality is negatively correlated with forest product collection. All things considered, the wealthiest households collect the least amount."
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