Economic and financial crime in the forest industry: internationally and in Romania

Abstract

With poor quantitative academic research on the topic, this study aims at presenting an accurate picture of how corruption and logging are interconnected, at the international level, as well as in Romania. Researchers need to have a wide and updated view on this phenomenon when trying to find efficient solutions. For this, the most recent available secondary data (2012-2020) from multiple well-known sources are used for statistical processing, taking into consideration 185 countries, but they are also used to analyze the situation in Romania, where illegal logging is escalating. We found a positive relation between corruption, shadow-economy and money laundering, on one hand, and deforestation, on the other hand, as well as identifying multiple determinants such as the wealth of the country, the efficiency of the government, the protection of the environment, and the public health. In Romania, northern forests are more exposed to illegal logging because of the quality of wood, and counties like Suceava are famous for the red-blooded crimes that happen to the ones who try to protect the woods from illegal exploitation. This analysis' purpose is to raise awareness upon economic and financial crime in the forest industry. These findings are relevant in understanding the phenomenon of illegal deforestation, and it contributes to the adoption of efficient countermeasures that contribute to a healthier environment for all of us.