Economic Contribution of the Forest Sector in Kentucky: Community Dependence and Economic Well-Being

Abstract

Rural communities depend on the forest sector to fulfill their subsistence needs and maintain economic well-being. The forest sector in Kentucky provides significant economic and employment opportunities to the rural communities in the state. Despite this, little is understood of how Kentucky communities’ dependence on the forest sector is related to their economic well-being. In this research, we divided Kentucky into three regions based on physiographic conditions and examine the economic contribution of the forest sector. We applied regression and correlation analyses to assess the relationship between forest sector dependence and economic well-being for Kentucky and for the three regions using common socioeconomic indicators for 2010 and 2017. Results indicate that although the forest sector plays a critical role in the livelihood of rural communities, its contribution is usually overshadowed by bigger sectors such as services and manufacturing. Accordingly, dependence on the forest sector usually results in a negative relationship with economic well-being. Study Implications: Forest activities are concentrated in rural and geographically difficult areas characterized by lower median income and limited employment opportunities and infrastructures. Although the forest sector plays an important role in the livelihood of rural communities, its contribution is typically obscured by large sectors such as services and manufacturing. Government intervention in rural infrastructure and workforce training would help to raise the livelihood of those in rural forest-dependent communities from persistent poverty. These results can be applied to devise strategies and advocate for and facilitate policies that ensure a continued role of the forest sector in Kentucky’s economy and in adjacent states with similar socioeconomic conditions.