5. Finally, a region dummy variable is used to
distinguish between firms operating on the
. . BC Coast s1 and in the Interior s0 . The
BC Coast constitutes a temperate rainforest
with no distinct period where the ground is
.
frozen , whereas the Interior is much drier
with a more continental climate and distinct
boreal-like climate. Thus, harvesting condi-
tions and the size of logs differ between the
two regions, as do the tenure arrangements
that are different in the Interior with greater
. reliance on short-term logging contracts than
on the Coast where long-term forest man-
.
agement agreements are in effect .