The Impact of Raw-Material Factor on the Territorial Production Structure of Primary Processing Industry

A case study of the lumbering and forest-products industry seeks to establish the effectiveness of the territorial structure of primary processing under the impact of the resource base and of various economic nonphysical factors. A set of variables, including the magnitude of timber reserves, volume of output and the regional conditions of production, is analyzed on an oblast-by-oblast basis to establish their impact on the structure of the industry. Economic effectiveness is measured in terms of the level of labor productivity resulting from various combinations of factors. In general, labor productivity tends to be high in timber-rich regions with large volumes of production. But high levels of performance can also be achieved with low volumes of production if the industrial structure reflects the magnitude of the local timber supply (timber-intensive industries in timber-rich regions and nonintensive industries in timber-poor regions) or if the structure is adapted to local market needs. Previous papers on the subject appeared in Soviet Geography, May 1972.