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Linking Factor Markets, Environment and Trade: The Case of Oil Palm in Malaysia

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  • Othman, Jamal

    (Dept. of Agr. and Resource Economics Faculty of Econornics Universiti Kebangsaan Malaysia 43600 Bangi Selangor D.E.)

Abstract

Contemporary issues and policy debate related to the environment or immigration reforms have the potential to affect Malaysia’s factor supplies and consequently agricultural production and trade. Likewise, changes in Malaysia’s export demand through trade policy reforms or income changes in importing countries can also affect domestic factor markets. However, to date very little is known empirically about the nature and extent of Malaysia’s factor markets-trade linkages. This paper employs a partial equilibrium commodity model to analyze the impacts of shifts in factor supplies and export demand in the Malaysian oil palm sub-sector. Given the data used in the study, factor supply shifts are shown to have smaller effects on output production relative to exports demand shifts.

Suggested Citation

  • Othman, Jamal, 1997. "Linking Factor Markets, Environment and Trade: The Case of Oil Palm in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 31, pages 53-69.
    • Handle: RePEc:ukm:jlekon:v:31:y:1997:i::p:53-69
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    1. Lewell F. Gunter & Ki Hong Jeong & Fred C. White, 1996. "Multiple Policy Goals in a Trade Model with Explicit Factor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 313-330.
    2. Thomas W. Hertel, 1989. "Negotiating Reductions in Agricultural Support: Implications of Technology and Factor Mobility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 559-573.
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