The Impact of Globalisation on Value-added Wood Products Trade

Abstract

Research background: The development of the Slovak economy depends on the demand in foreign markets. The Slovak economy is open and responds very sensitively to global changes. Globalisation brings positive as well as negative impacts on national economies. These impacts are also noticeable in the case of value added wood products. Globally, the furniture trade has grown more quickly than furniture production in the last ten years. The value of the world furniture trade has grown by 65%. On the other hand, domestic sales of furniture are low due to the orientation of the Slovak furniture producers on export, even if at the present time the positive development is reflected in an increasing total sales volume. Purpose of the article: This paper is focused on the assessment of globalisation impact on value added wood products trade. The aim of the paper is to determine the relationship between the trends of globalisation and furniture trade in Slovakia. Methods: The development of foreign furniture trade in Slovakia was analysed. In addition, the development of the KOF globalisation index was examined in the period from 2001 to 2017 by applying the linear regression and correlation analysis. Findings & Value added: Based on the analysed results, a positive linear relationship between the development of furniture trade in Slovakia and globalisation was observed. The results further show that the impact of globalisation is more significant in the case of export of furniture rather than its import.