IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-05-7.html
   My bibliography  Save this article

Factors Affecting the Indonesian Palm Oil Market in Food and Fuel Industry: Evidence from a Time Series Analysis

Author

Listed:
  • Deborah Bentivoglio

    (Department of Agricultural, Food and Environmental Sciences (D3A) Universit Politecnica delle Marche, Via Brecce Bianche, 60131 Ancona, Italy,)

  • Adele Finco

    (Department of Agricultural, Food and Environmental Sciences (D3A) Universit Politecnica delle Marche, Via Brecce Bianche, 60131 Ancona, Italy,)

  • Giorgia Bucci

    (Department of Agricultural, Food and Environmental Sciences (D3A) Universit Politecnica delle Marche, Via Brecce Bianche, 60131 Ancona, Italy.)

Abstract

Nowadays, the demand for palm oil has been increasing worldwide. The multipurpose use combined with a market price below makes palm oil an attractive product. Since 2006, Indonesia has been the biggest producer of palm oil in the world, replacing Malaysia as a chief producer. This study develops a simple theoretical model that integrates some of the factor that could influence the production of palm oil in Indonesia in order to establish the issue of cointegration and causality patterns. This analysis examined the relationships among Indonesian palm oil production, soybean oil price, area harvested for palm oil production in Malaysia and palm oil consumption. The finding shows that all variables positively and significantly affect Indonesian palm oil production. However, the ascent of the Indonesian palm oil industry is the result of a combination of several factors, some of which are relating to the palm oil plant itself, others to policy.

Suggested Citation

  • Deborah Bentivoglio & Adele Finco & Giorgia Bucci, 2018. "Factors Affecting the Indonesian Palm Oil Market in Food and Fuel Industry: Evidence from a Time Series Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 49-57.
    • Handle: RePEc:eco:journ2:2018-05-7
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/6795/3924
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/6795/3924
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
    2. Nik Muhammad Naziman Ab Rahman & Abdol Samad Nawi & Yusrina Hayati Nik Muhd Naziman, 2012. "The Price Discovery of the Malaysian Crude Palm Oil Futures Markets," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(4), pages 1-3.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bentivoglio, D. & Bucci, G. & Finco, A., 2018. "Factor affecting the palm oil boom in Indonesia: a time series analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277129, International Association of Agricultural Economists.
    2. Georgios Bertsatos & Plutarchos Sakellaris & Mike G. Tsionas, 2022. "Extensions of the Pesaran, Shin and Smith (2001) bounds testing procedure," Empirical Economics, Springer, vol. 62(2), pages 605-634, February.
    3. Mohamed, Hazik & Masih, Mansur, 2017. "Stock market comovement among the ASEAN-5 : a causality analysis," MPRA Paper 98781, University Library of Munich, Germany.
    4. Samad, Abdul & Masih, Mansur, 2018. "Does institutional quality matter in attracting foreign direct investment? the case of Ethiopia based on ARDL approach," MPRA Paper 108493, University Library of Munich, Germany.
    5. Janine Aron & John Muellbauer, 2006. "Housing Wealth, Credit Conditions and Consumption," CSAE Working Paper Series 2006-08, Centre for the Study of African Economies, University of Oxford.
    6. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    7. Neil R. Ericsson, 2021. "Dynamic Econometrics in Action: A Biography of David F. Hendry," International Finance Discussion Papers 1311, Board of Governors of the Federal Reserve System (U.S.).
    8. de Albuquerquemello, Vinícius Phillipe & de Medeiros, Rennan Kertlly & da Nóbrega Besarria, Cássio & Maia, Sinézio Fernandes, 2018. "Forecasting crude oil price: Does exist an optimal econometric model?," Energy, Elsevier, vol. 155(C), pages 578-591.
    9. Ketenci, Natalya, 2009. "The ARDL Approach to Cointegration Analysis of Tourism Demand in Turkey: with Greece as the substitution destination," MPRA Paper 86602, University Library of Munich, Germany.
    10. Jou, Rong-Chang & Huang, Wen-Hsiu & Wu, Yuan-Chan & Chao, Ming-Che, 2012. "The asymmetric income effect on household vehicle ownership in Taiwan: A threshold cointegration approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 696-706.
    11. Ekaterini Panopoulou, 2005. "A Resolution of the Fisher Effect Puzzle: A Comparison of Estimators," Money Macro and Finance (MMF) Research Group Conference 2005 18, Money Macro and Finance Research Group.
    12. Irene Fafaliou & Michael Polemis, 2013. "Competitiveness of the Euro Zone Manufacturing: A Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(1), pages 45-61, February.
    13. Patric H. Hendershott & Bryan D. MacGregor & Raymond Y.C. Tse, 2002. "Estimation of the Rental Adjustment Process," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(2), pages 165-183.
    14. Joan Costa-Font & Eduardo Rodríguez-Oreggia, 2006. "Path Dependency and the Allocation of Public Investment in Mexico," Environment and Planning C, , vol. 24(2), pages 297-311, April.
    15. Yannick L'horty & Christophe Rault, 2003. "Why Is French Equilibrium Unemployment So High?," Journal of Applied Economics, Universidad del CEMA, vol. 6, pages 127-156, May.
    16. Dierk HERZER & Felicitas NOWAK‐LEHMANN D. & Boriss SILIVERSTOVS, 2006. "Export‐Led Growth In Chile: Assessing The Role Of Export Composition In Productivity Growth," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 306-328, September.
    17. George Kapetanios, 2003. "A New Nonparametric Test of Cointegration Rank," Working Papers 482, Queen Mary University of London, School of Economics and Finance.
    18. Moayad H. Al Rasasi & John H. Qualls, 2020. "Revisiting the Demand for Money in Saudi Arabia," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 8(1), pages 38-45.
    19. Arslan Razmi, 2007. "The Contractionary Short-Run Effects of Nominal Devaluation in Developing Countries: Some Neglected Nuances," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(5), pages 577-602.
    20. Paulo Rodrigues & Denise Osborn, 1999. "Performance of seasonal unit root tests for monthly data," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(8), pages 985-1004.

    More about this item

    Keywords

    Palm oil; Time series analysis; Indonesia;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-05-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.