scholarly journals Price Adjustment of Oil Palm and Palm Oil in Thailand to the World Price of the Palm Oil Market

2020 ◽  
Vol 10 (2) ◽  
pp. 690-697
Author(s):  
Sriwena Saleerut ◽  
Chalermpon Jatuporn ◽  
Vasu Suvanvihok ◽  
Apinya Wanaset
Keyword(s):  
Palm Oil ◽  
Oil Palm ◽  
Wholesale Price ◽  
World Market ◽  
Oil Price ◽  
Long Run ◽  
The World ◽  
Stationary Test ◽  
Short Run ◽  
Retail Prices

The objectives of this study are to analyze: (1) the effects from the change of palm oil price in the world market to the prices of oil palm and palm oil in Thailand, and (2) the adjustment of oil palm and palm oil prices in Thailand to the change of the price of palm oil in the world market using monthly time series from January 2008 to September 2019. The statistics consist of the stationary test using the ADF unit root, the long-run equilibrium test using the cointegration, and the short-run adjustment to the equilibrium using the error correction model, respectively. The empirical findings show that farm-gate price is the most affected by the change of palm oil price in the world market, followed by wholesale, export, and retail prices, respectively. In line with the adjustment of the prices of oil palm and palm oil in Thailand to the change in the world palm oil price, it is found that farm-gate price has adjusted in the short-term to return the equilibrium with the highest speed at 27.883%, followed by wholesale price 22.710%, exporting price 18.792%, and retail price 15.658%, respectively.

scholarly journals PENURUNAN PAJAK EKSPOR DAN DAMPAKNYA TERHADAP EKSPOR MINYAK KELAPA SAWIT INDONESIA KE CINA (PENDEKATAN ERROR CORRECTION MODEL)

2018 ◽  
Vol 1 (3) ◽  
pp. 47-72
Author(s):  
Ernawati Munadi
Keyword(s):  
Error Correction ◽  
Palm Oil ◽  
Developing Economies ◽  
Error Correction Model ◽  
Oil Price ◽  
Export Demand ◽  
Correction Model ◽  
Export Duty ◽  
Long Run ◽  
The World

The palm oil Industry is an important sector in the Indonesian economiy as it is one of the country’s major export earners as well as food source for her population.Indonesia is the world second largest producer of palm oil after Malaysia, accounting for about 34% OF The  world production in the year 2006. Indonesia  is also the largest consumer of palm oil in the developing economies, in 2006. Indonesia consumed a total of 5.5 mn tonnes of palm oil. Of this amount 76.75% is comprised of  frying oil. About 55% of the production is exported in the form of crude palm oil mainly to Asian countries primarily to India and China and  Eruropean countries. Debate on Indonesia’s palm oil policy was stimulated by the sharp increase in cooking oil prices in 1994-1995 which resulted in the introduction of export tax rate on palm oil in order to maintain a certain level of domestic consumption.Using annual data for the period 1969-2006, an econometric  approach  mainly the error correction model. Was employed  in this study This paper examines the impacts of reduction in export duty onthe import demand of Indonesian palm oil to China. The findings indicate  that the  quantity of palm oil exported to China is significantly influenced by changes in the soybean oil price, world palm oil price, Industrial Production Index (IPI) exchange rate  and lagged of export demand of Indonesian palm oil to China by one year with the elasticity of 1,49, 1.47,0.24, 0.59, and 0.79, respectively. The coefficients for long run variables presented by the ECM are jointly not equal to zero.This result suggests that as a group, the long run variable (ECM) have influenced the changes in the export demand to China which is indicated by the significance of the coefficient. The simulation results suggest that the direct impact of reduction of export duty would increase the quantity exported to China. The Indonesia export to China from 95.36 thousand tones to 118,23 thousand tones.

THE IMPLEMENTATION OF BUSINESS ETHICS IN THE PALM OIL INDUSTRY

MODUS ◽  
2016 ◽  
Vol 27 (2) ◽  
pp. 183
Author(s):  
Felix Wisnu Isdaryadi
Keyword(s):  
Business Ethics ◽  
Vegetable Oil ◽  
Palm Oil ◽  
Oil Palm ◽  
Oil Industry ◽  
Social Consequences ◽  
Oil Crops ◽  
Rapid Economic Growth ◽  
Long Run ◽  
The World

Abstract Palm oil is the most produced vegetable oil in the world today-approximately 37 million metric tons, andis entirely GMO-free. Oil palm produces up to 10 times more oil per hectare than soybean, rapeseed or sunfower. Although oil palm is a more sustainable source of vegetable oil than other oil crops, there is concern that the growing demand of palm oil for food and bio fuel could lead to rapid and ill-managed expansion of palm oil production and result in serious environmental and social consequences. It is vital that the production and use of palm oil must be done in a sustainable manner based on economic, social and environmental viability. It becomes clear that these actions are benefcial on one hand, but, on the other hand, might be harmful in the long run. The palm oil industry may result in rapid economic growth. However, it could also degrade the environment, whichin turn could lead to public health problems in the longer term, decreasethe productivity and harm the economy.Keywords: palm oil industry, business ethics, environment, economy.

scholarly journals A cointegration analysis of crude palm oil price in Thailand

2018 ◽  
Vol 52 ◽  
pp. 00035
Author(s):  
Patchaya Songsiengchai ◽  
Shaufique F. Sidique ◽  
Marcel Djama ◽  
W.N.W. Azman-Saini
Keyword(s):  
Soybean Oil ◽  
Crude Oil ◽  
Error Correction ◽  
Palm Oil ◽  
Commodity Prices ◽  
Cointegration Analysis ◽  
Oil Price ◽  
Crude Palm Oil ◽  
Long Run ◽  
The World

Reliazing the pass-through effects of global commodity prices on domestic prices, this study develops a vector error correction model (VECM) to test for the determinants and direction of causality between global prices and crude palm oil (CPO) price in Thailand. Malaysian crude palm oil, world soybean oil and world crude oil prices were investigated as factors affecting the Thai CPO price. Using the Johansen cointegration test, the result unveils a presence of long-run relationship among the determinants. This long-run relationship, proposes that CPO price flows in Thailand are positively influenced by the Malaysian CPO price and the error correction term suggests that approximately 35 percent of total disequilibrium in Thai CPO price was corrected in the following month. Moreover, the findings show Granger causality from each of the Malaysian CPO price and the world soybean oil price for the Thai CPO price. Information flow regarding the price movements of the Malaysian CPO and soybean oil affect the Thai CPO price and vice-versa. Whereas, the evidence for a causal relationship that runs from the world crude oil price to the Thai CPO price is found, but not in reverse.

scholarly journals FARMER PERCEPTION TO ISPO IN OIL PALM PLANTATION IN WEST JAVA

2019 ◽  
Vol 6 (1) ◽  
pp. 49
Author(s):  
Ernah Ernah ◽  
Apong Sandrawati ◽  
Melania Fadillah ◽  
Dewi Rengganis ◽  
Sudarjat Sudarjat
Keyword(s):  
Qualitative Research ◽  
Palm Oil ◽  
Oil Palm ◽  
World Market ◽  
Market Demand ◽  
West Java ◽  
Indonesian Government ◽  
Oil Palm Plantation ◽  
Environmental Friendly ◽  
The World

Palm oil is one of the leading commodities in the world market that contributes to the Indonesian economy. In fulfilling market demand but environmental friendly, the Indonesian government issued a policy of sustainable standards known as the Indonesian Sustainable Palm Oil (ISPO) principle. This study aims to determine the farmers' perception of ISPO in the community of oil palm farmers in West Java. This study designed as qualitative research. The results show that not all standards were sustainable. ISO has been applied to oil palm plantations in West Java. For this reason, government efforts were needed to assist farmers in implementing the ISPO.

The World’s Leader in the Palm Oil Industry: Indonesia

2015 ◽  
Vol 13 (1) ◽  
Author(s):  
Agnes C. Sequiño ◽  
Jessica Magallon-Avenido
Keyword(s):  
Palm Oil ◽  
Oil Palm ◽  
Delphi Technique ◽  
Oil Industry ◽  
World Market ◽  
Asian Countries ◽  
Crude Palm Oil ◽  
Policy Makers ◽  
The World ◽  
Fast Development

Indonesia, being the world leader in the production of crude palm oil, has been successful in serving the domestic and world market with palm products and palm derivatives. The industry contributes US$17.6 billion through exports in 2012. At present, the demand for crude palm oil has soared high due to the increasing awareness of the varied uses of palm oil.The challenge to countries cultivating oil palm is how to cope with the local and global demand.The focus now is to increase plantation areas to produce a higher volume of crude oil to serve the needs of the world market. Today, the total land area planted to oil palm in Indonesia has reached 9.7 million hectares. This study used data mining and Delphi technique.  Data were sourced from public domain websites and several databases. This study determined the gap between production and utilization and to provide information to existing industry players, policy makers, future investors, and would-be entrants to the industry on the latest  trends noting the fast development of the industry not only in Indonesia but also in other Southeast Asian countries. Although Indonesia has been successful in providing the local and international  market with palm oil products and palm derivatives,  it has to benchmark with other palm producing countries to avoid industry stagnation and to intensify diversification particularly in the development of new edible  products to take advantage of the health benefits derived  from the use of  palm oil.

scholarly journals The Impact of Palm Oil Price on the Malaysian Stock Market Performance

2014 ◽  
Vol 6 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Sabariah Nordin ◽  
Rusmawati Ismail .
Keyword(s):  
Stock Market ◽  
Palm Oil ◽  
Commodity Prices ◽  
Oil Price ◽  
Stock Market Index ◽  
Market Index ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run ◽  
The Impact

The performance of a stock market has always become the center of attention for market analysts and investors. Due to its significant role in the economy of a country, the performance of the stock market is always associated with the economic condition of a country. Because of that, this study intends to examine the impact of commodity prices in influencing the behavior of the stock market index specifically by focusing on the palm oil prices. Since Malaysia is one of the major producers of palm oil, the behavior of the palm oil price is expected to have an influence on the Malaysian stock market index. In pursuing the objective, we have adopted the bounds test approach to analyze the existence of cointegration relationship among the underlying variables of the Malaysian stock market index, interest rate, exchange rate and the price of palm oil. Using monthly data for the period of 1997M12 to 2012M9, results of an ARDL test indicates that all the variables employed are significant in influencing the Malaysian stock market index in the long run as well as in the short run.

Food and Agriculture Organization

1955 ◽  
Vol 9 (1) ◽  
pp. 160-164
Keyword(s):  
Wholesale Price ◽  
World Market ◽  
Population Increase ◽  
Director General ◽  
Government Control ◽  
Food And Agriculture ◽  
Food And Agriculture Organization ◽  
The World ◽  
Retail Prices ◽  
20Th Session

CouncilThe 20th session of the Council of the Food and Agriculture Organization was held in Rome from September 27 through October 8, 1954, under the chairmanship of Mr. G. Ugo Papi (Italy). The Council considered various aspects of the world food situation and heard an oral report by the Director-General (Cardon) on the 1953–1954 crop year and prospects for 1954–1955. Mr. Cardon reported that, while agricultural production in the world as a whole had increased at a pace faster than the rate of population increase, the increase had been uneven, both in terms of geographical distribution and in terms of crops and commodities produced. The situation had now been reached, Mr. Cardon observed, where the need to expand agriculture existed in one part of the world while serious surpluses existed elsewhere. Another disturbing feature, Mr. Cardon noted, was that the somewhat eased problem of surpluses of some commodities had resulted from decreased production rather than increased consumption. The over-all stability of the price of agricultural products had been a striking feature of the past year, Mr. Cardon added, resulting mainly from the fact that the main surplus stocks were under government control and had not been unloaded in an uncoordinated way on the world market. One serious problem which Mr. Cardon pointed out was that, while the wholesale price had followed the international price closely, retail prices had been rigid. Mr. Cardon emphasized that in order for the benefits of programs for agricultural efficiency to be realized, marketing and processing would also have to be rationalized.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

An Econometric Analysis on the Relationship between Globalisation and Inequality in South Africa

2020 ◽  
Vol 11 (1) ◽  
pp. 89-89
Author(s):  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Well Being ◽  
Causality Analysis ◽  
Global Integration ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Distribution Of Resources ◽  
Short Run ◽  
The Impact

Globalisation has had an unprecedented impact on the development and well-being of societies across the globe. Whilst the process has been lauded for bringing about greater trade specialisation and factor mobility many have also come to raise concerns on its impact in the distribution of resources. For South Africa in particular this has been somewhat of a contentious issue given the country's controversial past and idiosyncratic socio-economic structure. Since 1994 though, considerable progress towards its global integration has been made, however this has largely coincided with the establishment of, arguably, the highest levels of income inequality the world has ever seen. This all has raised several questions as to whether a more financially open and technologically integrated economy has induced greater within-country inequality (WCI). This study therefore has the objective to analyse the impact of the various dimensions of globalisation (economic, social and political) on inequality in South Africa. Secondary annual time series from 1990 to 2018 were used sourced from the World Bank Development indicators database, KOF Swiss Economic Institute and the World Inequality database. By using different measures of inequality (Palma ratios and distribution figures), the study employed two ARDL models to test the long-run relationships with the purpose to ensure the robustness of the results. Likewise, two error correction models (ECM) were used to analyse the short-run dynamics between the variables. As a means of identifying the casual effects between the variables, a Toda-Yamamoto granger causality analysis was utilised. Keywords: ARDL, Inequality, Economic Globalisation; Social Globalisation; South Africa

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