Wood paneling isn't necessarily a "specialty product". Yes, any wood can be milled into the paneling. Paneling typically has a tongue and groove edge detail or another water shedding profile to keep water from getting behind it. What ever wood you use you will want to make sure you properly water proof behind it and then for longevity use some sealer on the exposed surface. There is a product called Sikkens that is great for exterior wood surfaces. I've used it on exterior applications and the surfaces I put it on look like the day I applied it.

http://www.sikkens.com/Pages/default.aspx