The effects of the euro adoption on the timber market in Romania

AuthorAntonoaie, V.
PositionPhD. Student, Dept. of Marketing, Tourism and International Relations, Transilvania University of Brasov
Pages29-36
Bulletin of the Transilvania University of Braşov • Vol. 6 (55) No. 1 - 2013
Series V: Economic Sciences
THE EFFECTS OF THE EURO ADOPTION
ON THE TIMBER MARKET IN ROMANIA
Victor ANTONOAIE
1
Abstract: This paper a nalyses the potential effects of adopting the Euro
currency in Romania on the timber pr ices. We begin from the curr ent
situation of Romanian wood a uctions (sta rting price, selling pr ice, timber
type, volume auctioned, volume sold) and compare it to the situa tion in
Slovakia. In this case, an in depth a nalysis on the effects of the cu rrency
change will be pr esented, focusing on the changes that have occurred in the
prices of genera l goods and materia ls, especially on the timber market,
taking into account the cha nges that have taken place on the Slovakian
timber market. We will apply the same trend to Romania a nd set up a
forecasting model and study the potential effects, both immediate and long
term of adoptin g the Euro cur rency for the timber market (va riation in pr ice
and timber volume).
Key words: timber auctions, pr ices, volume sold.
1 PhD. Student, Dept. of Marketing, Tourism and International Relations, Transilvania University of Braşov.
1. Introduction
As part of the European Union, Romania
is expected to become part, at some point
decided by a series of criteria, of the
monetary union which translates into the
adoption of the single currency, the Euro.
This process, from national currency to
the Euro, has taken place in many member
states and has caused significant changes
in all aspects of the economy and state.
The newest member state to take this
important step was Slovakia which
adopted the Euro from the 1st of January
2009. The effects of this action were
widespread and lasting in all levels of
society.
In this paper we will make a comparison
between the situation in the post-Euro
adoption Slovakian market and the timber
market in Romania aiming to present
several possible outcomes of the single
currency adoption in our country.
2. The timber market in Romania
The timber market is subjected to the
same legislation as any other market, but
with some specific traits influenced by:
total timber mass resources from a specific
area, forest accessibility ,nature and wood
characteristics, seasonality, the way in
which the price of wood is calculated in
different areas, the sales method (auction
or direct sale).
Most of the timber sold legally in
Romania goes through an auctioning
process, where we have several sellers and
buyers, both from the state and private
sector. In general, there are several
auctions a year, which are set according to
the periods best suited for felling and the
national legislation regarding auctions
(mainly OUG nr. 34/2006 regarding public

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