Demand and Supply of Printing and Writing Paper in Thailand

Abstract

The objectives of the study were to investigate factors affecting the demand and supply of printing and writing papers as well as to project future price demand and supply by a two-stage least squares method. Time series data during a 15-year period (1994–2008) were employed for formulating the functions. Furthermore, computation of elasticities of demand and supply, projection of demand and supply, and the average price of printing and writing papers during the next 5-year period (2009–2013) were carried out.

The study indicated that factors which directly and inversely affected the demand were population and the average price of printing and writing papers, respectively. In addition, factors  that directly and inversely affected the supply were the quantity of export and the average price of pulp, respectively, while factors that directly and inversely affected the price of printing and writing papers were the quantity exported and income per capita, respectively. The elasticity of demand with respect to population and the average price of printing and writing papers was 9.489 and -0.730, respectively, while the elasticity of supply with respect to the quantity of printing and writing papers for export and the average price of pulp was 0.682 and -0.565, respectively.

The projection of demand, supply, and the average price of printing and writing papers all showed an upward tendency, with the quantity of production higher than the quantity of consumption. Thus, a shortage of printing and writing papers should not be a severe problem. The producers should formulate appropriate production plans according to the quantity of consumption to avoid surplus problems. 

Keywords: demand, supply, printing and writing paper