ECONOMIC CONTRIBUTION OF FOREST SECTOR IN KENTUCKY: COMMUNITY DEPENDENCE AND ECONOMIC WELL-BEING

Rural communities depend on the forest sector to fulfill their subsistence needs and maintain economic well-being. The forest sector in Kentucky plays an important role in the state’s rural economic development through provision of market and non-market goods and services along with employment. However, there is lack of understanding of how Kentucky communities’ dependence on forest sector is correlated with the communities’ economic well-being. This research examines the economic contribution of the forest sector and uses common indicators of forest sector dependence and economic well-being to explore the relationship between forest sector dependence and economic well-being at three regional levels across Kentucky. Different forms of regression and correlation analyses were applied. Results show that different forest sub-sectors in different regions have mixed relationships with indicators of economic well-being. These results could be applicable in designing incentive programs to support sustainable and thriving forest sector in the state