A gravity model analysis of trade regulations on wood products exports: Evidence from Cameroon, Ghana, and the republic of Congo

The study assesses the impact of the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA) and the Lacey Act Amendment (LAA) on the export quantities of wood products from Cameroon, Ghana and the Republic of Congo using the panel gravity Poisson Pseudo Maximum Likelihood (PPML) technique. The results indicate that FLEGT VPA had a negative and significant impact on industrial roundwood export quantity from all three countries. Similarly, its effects on the export of sawnwood and wood-based panels are also negative, except for Cameroon. On the other hand, the impact of LAA appears to be mixed. These results are validated by applying an alternative Driscoll-Kraay robust standard error estimation method.