5. Finally, a region dummy variable is used to
distinguish between firms operating on the
. . BC Coast (1 and in the Interior (0) . 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 conditions 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 management agreements are in effect) .