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Mr. Nalin M. Kishor, Mr. Muthukumara Mani, and Mr. Luis F. Constantino

deforestation will decrease because of the reduction in timber exports. In addition, job creation, capturing more value-added domestically, and improving the scale efficiency of domestic processing are also often given as reasons for such restrictions. Many developing countries thus look to timber trade restrictions as a means of achieving economic, environmental, and social objectives. Several justifications are offered why a timber export tax and, its most extreme form—a log export ban (LEB) should be implemented. Industrial processing of natural resources has long been