Figure 1.
The diagram shows relationships linking concentration of the timber industry to quality of timber products. Concentration leads to economies of scale effect and effect of specialized division of labor. Economies of scale reduce costs, while specialized division of labor helps maintain consistency, together improving forestry outcomes. These improvements affect forestry practitioners, fixed asset investment in forestry, production efficiency, forest coverage rate, and forest area. Simplification improves work efficiency and skill levels through the human capital effect. Competition effect and knowledge spillover effect promote innovation and pursuit of profit. These pathways jointly improve the quality of timber products.Theoretical analysis framework