The master's thesis analyzes the functioning, spatial distribution of actors, and development factors of the regional economic cycle (REC) of wood processing in the Škofja Loka region based on an analysis of current literature, statistical data processing, and 42 semi-structured interviews with actors in the forest-wood chain. Development factors, including natural resources, human capital, market, knowledge and policies, systematically influence all four phases of the REC: production, processing, consumption, and recycling. The wood processing industry has a long tradition in the Škofja Loka region, but in recent decades it has faced various structural changes, a decline in the secondary wood processing, and increased dependence on imports of certain types of wood. Despite sufficient raw material resources and well-developed horizontal links between actors, which contribute to the resilience and adaptability of the wood processing REC, vertical links within the REC remain relatively weak. Key development challenges include strengthening the secondary wood processing, improving links between actors, and establishing more coordinated and participatory management at the regional level.
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