ECONOMIC EFFECTS OF CONCENTRATION IN RUSSIAN FOREST INDUSTRY PULP-PAPER BRANCH.

There are more forests in Russia than in any other countries. In Russia since ancient times the forest had played a big role. With the development of a market, the forest industry has also developed in our country. By the middle of the twentieth century, apowerful wood-chemical complex was formed. It is includes the harvesting and processing of wood. Today forests occupy more than 45% of the territory of the country. It is more than 1184.5million hectares. How to manage forest resources most effectively? For a long time there was a monopoly. The situation changed in 2006, when the Forest Code was accepted. In recent years, the situation has changed significantly, the structure of markets for woodworking products has become more complicated, and different types of market structures for these products have formed, depending on the region and the type of final product. Purpose. Analyze themarket concentration in Russian woodworking industry currently. Materials and methods. Industry Statistics was used, statistical reports of forest companies were analyzed, methods of deduction, analysis, the empirical method, and methods for calculating concentration coefficients were used. Results and scope. The development of construction sector has led to an increase sales. The largest ten companies account for more than 70% of the market. These include «Ilim Group», with revenues is110.5 billion rubles, Mondi SLPK, whose revenue grew to 54.9 billion rubles, and the Segezha group, which combines pulp and paper and woodworking assets of AFK Sistema (43,7 billion rubles.). Thus, the market concentration was 75%, the Herfindahl-Hirschman index is 1595 (2017), 1247(2018), which indicates a moderate concentration. The entropy index for the first top 5 leaders is 1.632092(2018). At the same time, the Bane Index showed that the «Ilim Group» has greater market power than other companies. It isalso least a small amount of market power in hands of other forest industry corporations. Tobin index q> 1 only for the Ilim Group. This means that the level of profitability for the company is higher than necessary. Conclusion. The forest industry has a complex structure. It distinguishes about 20 industries, sub-sectors and industries. To increase economic efficiency, it is advisable to increase competition between firms. [ABSTRACT FROM AUTHOR]