A Comparative Assessment of Cross-Sectoral Links in the Ukrainian Timber Industry

Keywords: timber industry, intermediate consumption, cost, production-cost tables, cross-sectoral links.


The timber industry is an important intersectoral segment and an element of many production chains. The products of this industry are the raw material base for operation of many units of manufacturing and other economic activities.

The purpose of the article is to conduct a comparative assessment of the cross-sectoral links of the Ukrainian timber industry, and to draw relevant analytical conclusions.

The main need for assessing the cross-industry relationships of the timber industry is to determine the match and the reciprocal impact of supply and demand on woodworking products. For this purpose, the structure of output and costs (intermediate consumption) of the woodworking industry of Ukraine, Poland, Germany and other EU countries were compared. The information base of the study was the cost-release tables.

An empirical study performed by the author reveals that the structure of consumption of timber products with industrial purposes in Ukraine essentially differs from the analogous structure in Poland and Germany by relatively small shares of construction and furniture industry. The revealed structural differences in cross-sectoral links of the timber industry are a core reason explaining why the consumption of timber products by the Ukrainian economy is six times lower than the Polish economy and more than twenty times lower than the German one. As a result, the supply of domestic furniture enterprises and construction sector with input resources is still an empty niche for the domestic timber industry, although a promising one.       

According to the analysis of the cost structure and dynamics in timber industry of Ukraine, it was found that the cost level of domestic woodworking is the highest among EU countries. This is largely explained by the significant differences in the cost structures (intermediate consumption) of the timber industry of Ukraine and the EU. The latter is dominated by the share of timber products, while in Ukraine it tends to decrease. Also, during 2014–2017, the share of agricultural and forestry products increased in the structure of expenditures of the domestic timber industry, while the share of products and services of retail chains decreased. As a result, there was a decrease in the degree of processing of timber raw materials and deterioration in the manufacturability of production.

Hence the need to transform the structure of output in timber industry in a way to increase the output of products for the construction and furniture industries, as well as creating organizational, economic and institutional legal conditions that would contribute to the growth of demand for such products in the domestic and foreign markets.


Download data is not yet available.


Halasіuk, V. V. (2017). Osoblyvosti derzhavnoi polityky shchodo zabezpechennia syrovynoiu pidpryiemstv derevoobrobnoi promyslovosti Ukrainy [Tools ensuring the access to raw materials for woodworking industry enterprises of Ukraine]. Visnyk Kharkivskoho nationalnoho ahrarnoho universytetu imeni V. V. Dokuchayeva. Seriia: Ekonomichni nauky – The Bulletin of Kharkiv National Agrarian University named after V. V. Dokuchaev. Series: Economic Sciences, 3, 254–264 [in Ukrainian].

Deyneko, O. T. (Ed.), (2018). Rozvytok promyslovosti dlia zabezpechennia zrostannia ta onovlennia ukrainskoi ekonomiky [Development of industry for growth and renewal of the Ukrainian economy]. Kyiv: Institute for Economics and Forecasting of the NAS of Ukraine [in Ukrainian].

Deyneko, O. T., Ostashko, T. O., & Tochylin, V. O. (Eds.). (2018). Problemy, napryamy ta chynnyky spryiannia rozvytku vnutrishnoho rynku Ukrainy (realnyi sektor ekonomiky) [Problems, directions and factors contributing to the development of the domestic market of Ukraine (real sector of the economy)]. Kyiv: Institute for Economics and Forecasting of the NAS of Ukraine [in Ukrainian].

Heyets, V. M., & Ostashko, T. O. (Eds.). (2016). Implementatsiia Uhody pro asotsiatsiiu mizh Ukrainoiu ta YeS: ekonomichni vyklyky ta novi mozhlyvosti [The implementation of the Agreement about Association between Ukraine and the EU: Economic Challenges and opportunities] (Scientific report). Kyiv: Institute for Economics and Forecasting NAS of Ukraine [in Ukrainian].

Wanat, L., Potkański, T., Chudobiecki, J., Mikołajczak, E., & Mydlarz, K. (2018). Intersectoral and Intermunicipal Cooperation as a Tool for Supporting Local Economic Development: Prospects for the Forest and Wood-Based Sector in Poland. Forests, Issue 9 (9), 531–542. Retrieved from: https://www.preprints.org/manuscript/201806.0270/v1 [in English]

Ramage, M., Burridge, H., Busse-Wicher, M., Fereday, G., Reynolds, T., Shah, D., Wu, G., & et al. (2017). The wood from the trees: The use of timber in construction. Renewable and Sustainable Energy Reviews, Vol. 68, Part 1, 333–359. Retrieved from: https://www.sciencedirect.com/journal/renewable-and-sustainable-energy-reviews/vol/68/part/P1

Geršak, U. & Muhaj, D. (2016). Inter-sectoral production linkages in Slovenia: an input – output analysis. Retrieved from: https://bankaslovenije.blob.core.windows.net/publication-files/Uro%C5%A1_Ger%C5%A1ak_and_Daniela_Muhaj_Inter-sectoral_Production_Linkages_in_Slovenia_An_Input-Output_Analysis_2_2016.pdf [in Slovene].

Tablytsia “vytraty-vypusk” za 2017 rik (v tsinakh spozhyvachiv). Derzhavna sluzhba statystyky Ukrainy [Ukrainian input-output table in consumer prices. 2017. State Statistics Service of Ukraine]. csrv2.ukrstat.gov.ua. Retrieved from http://csrv2.ukrstat.gov.ua/operativ/operativ2006/vvp/vitr_vip/vitr_u/arh_vitr_u.html [in Ukrainian].

National accounts aggregates by industry (2017). Official website of Eurostat. appsso.eurostat.ec.europa.eu. Retrieved from http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=nama_10_a64&lang=en [in English].

Abstract views: 59
PDF Downloads: 64
How to Cite
Sozanskyy, L. Y. (2019). A Comparative Assessment of Cross-Sectoral Links in the Ukrainian Timber Industry. Statistics of Ukraine, 86(3), 47-55. https://doi.org/10.31767/su.3(86)2019.03.05