An Empirical Analysis of the Impacts of Forestry Ecological Projects on Economic Development in Mountainous Area

The relationship between environmental protection and regional economic development is the main content that environmental policy debates. This issue is particularly prominent and important in the mountains. Forestry ecological project plays an important role in the promotion of environmental restoration in the mountain areas, but the contribution of mountain economy is still very vague. This study takes Xiangxi Tujia and Miao Autonomous Prefecture of Wuling Province as an example and establishes the fixed effect model (LSDV), which is drawn that forestry ecological construction on the overall effect of the regional national economy is positive, which increased afforestation area by 1%, Xiangxi’s GNP by 3.7%, the first industrial production by 2.4%, secondary industry production by 4.2% and the third industry production by 4.9%. There is no doubt that economic forest than timber forest and public welfare forest contributes more to areas of national economy from the Tree species afforestation model.