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

Abstract

This paper analyses the potential effects of adopting the Euro currency in Romania on the timber prices. We begin from the current situation of Romanian wood auctions (starting price, selling price, timber type, volume auctioned, volume sold) and compare it to the situation in Slovakia. In this case, an in depth analysis on the effects of the currency change will be presented, focusing on the changes that have occurred in the prices of general goods and materials, especially on the timber market, taking into account the changes that have taken place on the Slovakian timber market. We will apply the same trend to Romania and set up a forecasting model and study the potential effects, both immediate and long term of adopting the Euro currency for the timber market (variation in price and timber volume).