ATTRACTIVENESS OF THE TIMBER MARKET TO PRIVATE INVESTMENT IN THE STATE OF PARÁ

Abstract

ABSTRACT: The objective of this study was analyze the risk-return of the main timber producing municipalities from 2008 to 2014. The geometric growth rate (TGC) was used as an indicator of return and the coefficient of variation (CV) as indicative of risk. The attractiveness of the timber market to private investment in the state of Pará was quite varied among the municipalities evaluated. The coherent risk/return ratio has positive values for the expectation of return, that is, it attracts investment, however, in the municipalities that presented negative values, the risk/return relationship was incoherent and consequently would not attract private investment. There was also an attractive market for different investor profiles classified as risk averse, traditional and risk prone. Most municipalities are classified as attractive to the traditional investor. According to the results, it is concluded that the timber market of the municipalities of the state of Pará is in large part coherent and more attractive to private investment of a traditional profile.KEYWORDS: Forest economy, Risk and return, Timber market.