Contribution of Forest Production to GDP, and its challenges in Oromia National Regional State, Ethiopia

Hundessa Adugna Yadeta


This study aimed to analyze the contribution of forest production and challenges in forestry accounting. This study was conducted on the regional GDP of Oromia national regional state based on 10 years data. The result shows that market value of forest production and its contribution to GDP of Oromia showed continuous increment. Forest products are used as a source of fuel, production of timber and source of construction materials. On an average, forest production contributed about 6.10% to GDP and became the second least contributor to the GDP of Oromia. Reduction of forest coverage due to deforestation, underestimation of value of forestry products and existence of missing attributes of forestry in the SNA are the main challenges in forestry contribution to GDP of Oromia. Thus, Bureau of finance and economic development of Oromia should re-examine how economic growth can be achieved through contribution of forest production, taking awareness of existing capacity to increase growth and alleviate poverty. Resources should be directed into areas where there is adequate evidence of potential growth. This will be achieved through enhancement of conservation and wise use of forest resources so that it can contribute more to the domestic income directly and indirectly through its contribution to other sectors.

Keywords: GDP, Contribution, Oromia, Forest Production, Deforestation, Underestimation

JEL Classification: R11, Q56

Full Text:



BoFED. (2011). Oromia National Regional State Regional Economic Accounts Statistics. PART- IV 1992-2002 EFY Estimates. Addis Ababa, Ethiopia: Oromia Bureau Of Finance & Economic Development.

Dervis, K. (2010). The World Economy and Development. Paper presented on 25th Nov 2010. Paris, France: Paris School of Economics (PSE).

FAO. (2006). Forestry Contribution to National Economy and Trade in Ethiopia, Kenya and Uganda. By, By Kilawe, E. and Habimana, D. Addis Ababa, Etiopia: Food and Agriculture Organization.

Food and Agriculture Organizaion. (2004). Contribution of the Forestry Sector to National Economies, 1990-2011, by Arvydas Lebedys and Yanshu Li. Finance Working Paper FSFM/ACC/09. Rome, Italy: Food and Agriculture Organization.

Hirpassa, T. (2010). An Assessment of Forest Resource Conservation and Development Strategy in the Case of Ameya Woreda South West Shewa Zone, Oromia Regional State. Addis Ababa, Ethiopia: Addis Ababa University.

Hummel, E. A. (1984). Forest Policy: A Contribution to Resource Development, Martines Nijhoff/. Boston, USA: Dr. W.Jank Publishers.

Kamal, M. K. (2010). Forest Restoration And Rehabilitation In Bangladesh. Chittagong, Bangladesh: Chittagong University.

Mergo, L. (2014). Indigenous Forest Management among the Oromo of Horro Guduru, Western Ethiopia. Jimma, Ethiopia: Jimma University.

NPC. (2015). An economic development strategy for Ethiopia: A comprehensive guidance & a development strategy for the future. . Addis Ababa, Ethiopia: National Plan Commission of Ethiopia.

ONRS. (2011). Program of Plan on Adaptation to Climate Change. Addis Ababa, Ethiopia: Oromiya National Regional State.

ONRSAB. (2014). Agricultural Transformation Agenda of Oromia Region: Cooperatives Unions as Key Players. Presented On International Conference in Dember 2014. Addis Ababa, Ethiopia: Oromia National Regional State Agriculture Bureau.

Tietenberg et al. (2012). Environmental and natural resource Economics, 9th Edition. Boston: Pearson Education, Inc.

United Nations. (2008). International Standard Industrial Classification of all Economic Activities Revision 4. New York: United Nations Department of Economic and Social Affairs, Statistics Division.

WRI. (2007). Securing Rights, Combating Climate Change. How Strengthening Community Forest Rights Mitigates Climate Change. World Resource Institute.



ISSN: 2086-1575  E-ISSN: 2502-7115

SHERPA/RoMEO LogoMoraref

 Creative Commons License

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.