Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak

This paper examines the relationship between the production of Malaysian palm oil and its determinants; total area planted and palm oil price using Johansen multivariate cointegration analysis based on ECM. The relationship among those variables is investigated using annual data from 1972 to 2008. T...

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Main Author: Abdu Razak, Errie Azwan
Format: Student Project
Language:English
Published: Faculty of Business and Management 2010
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/19007/
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author Abdu Razak, Errie Azwan
author_facet Abdu Razak, Errie Azwan
author_sort Abdu Razak, Errie Azwan
building UiTM Institutional Repository
collection Online Access
description This paper examines the relationship between the production of Malaysian palm oil and its determinants; total area planted and palm oil price using Johansen multivariate cointegration analysis based on ECM. The relationship among those variables is investigated using annual data from 1972 to 2008. The researcher focused on that particular period of study because the production of Malaysian palm oil had been accelerating at a rapid rate in the past, especially prior to 1980s. After having completed the analysis by using VECM, the findings shows that both independent variables; total area planted and palm oil price have negative relationship towards production of Malaysian palm oil. In long run relationship, palm oil price is influences the production of palm oil in Malaysia. On the other hand, Granger causality resulted that there is no causality relationship between total area planted and production of Malaysian palm oil in short run relationship while palm oil price and production of Malaysian palm oil have unidirectional causality relationship. It means that, the production of Malaysian palm oil “granger cause” the palm oil price.
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format Student Project
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institution Universiti Teknologi MARA
institution_category Local University
language English
last_indexed 2025-11-14T21:58:40Z
publishDate 2010
publisher Faculty of Business and Management
recordtype eprints
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spelling uitm-190072018-12-18T04:46:23Z https://ir.uitm.edu.my/id/eprint/19007/ Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak Abdu Razak, Errie Azwan Malaysia Palm oil This paper examines the relationship between the production of Malaysian palm oil and its determinants; total area planted and palm oil price using Johansen multivariate cointegration analysis based on ECM. The relationship among those variables is investigated using annual data from 1972 to 2008. The researcher focused on that particular period of study because the production of Malaysian palm oil had been accelerating at a rapid rate in the past, especially prior to 1980s. After having completed the analysis by using VECM, the findings shows that both independent variables; total area planted and palm oil price have negative relationship towards production of Malaysian palm oil. In long run relationship, palm oil price is influences the production of palm oil in Malaysia. On the other hand, Granger causality resulted that there is no causality relationship between total area planted and production of Malaysian palm oil in short run relationship while palm oil price and production of Malaysian palm oil have unidirectional causality relationship. It means that, the production of Malaysian palm oil “granger cause” the palm oil price. Faculty of Business and Management 2010 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/19007/2/PPb_ERRIE%20AZWAN%20ABDU%20RAZAK_BM%20T%2010_5.pdf Abdu Razak, Errie Azwan (2010) Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak. (2010) [Student Project] (Unpublished)
spellingShingle Malaysia
Palm oil
Abdu Razak, Errie Azwan
Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title_full Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title_fullStr Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title_full_unstemmed Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title_short Relationship between total area planted and palm oil price towards production of Malaysian palm oil/ Errie Azwan Abdu Razak
title_sort relationship between total area planted and palm oil price towards production of malaysian palm oil/ errie azwan abdu razak
topic Malaysia
Palm oil
url https://ir.uitm.edu.my/id/eprint/19007/