Selected factors influencing China's palm oil import demand from Malaysia

The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China&...

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Main Authors: Ahmad, Mohammad Yusof, Wong, Kelly Kai Seng, Kamarulzaman, Nitty Hirawaty
Format: Article
Published: Universitas Muhammadiyah Yogyakarta 2022
Online Access:http://psasir.upm.edu.my/id/eprint/103153/
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author Ahmad, Mohammad Yusof
Wong, Kelly Kai Seng
Kamarulzaman, Nitty Hirawaty
author_facet Ahmad, Mohammad Yusof
Wong, Kelly Kai Seng
Kamarulzaman, Nitty Hirawaty
author_sort Ahmad, Mohammad Yusof
building UPM Institutional Repository
collection Online Access
description The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China's demand for Malaysian palm oil by adopting the Auto-Regressive Distributed Lag (ARDL) analysis. The finding revealed that the currency rate of exchange, the foreign trade price of Malaysian palm oil to China, and the international soy oil price significantly influence Malaysian palm oil demand in China. Nevertheless, China's real GDP per capita showed a positive and significant influence only in the long run. The demand for Malaysian palm oil in China was not significantly impacted by the palm oil price offered by Indonesia, neither in the long run nor short run. Thus, the authorities related to this industry need to strategize the stock management system to control the price and currency stabilization to maintain its competitive power.
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institution Universiti Putra Malaysia
institution_category Local University
last_indexed 2025-11-15T13:41:00Z
publishDate 2022
publisher Universitas Muhammadiyah Yogyakarta
recordtype eprints
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spelling upm-1031532024-06-28T08:57:39Z http://psasir.upm.edu.my/id/eprint/103153/ Selected factors influencing China's palm oil import demand from Malaysia Ahmad, Mohammad Yusof Wong, Kelly Kai Seng Kamarulzaman, Nitty Hirawaty The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China's demand for Malaysian palm oil by adopting the Auto-Regressive Distributed Lag (ARDL) analysis. The finding revealed that the currency rate of exchange, the foreign trade price of Malaysian palm oil to China, and the international soy oil price significantly influence Malaysian palm oil demand in China. Nevertheless, China's real GDP per capita showed a positive and significant influence only in the long run. The demand for Malaysian palm oil in China was not significantly impacted by the palm oil price offered by Indonesia, neither in the long run nor short run. Thus, the authorities related to this industry need to strategize the stock management system to control the price and currency stabilization to maintain its competitive power. Universitas Muhammadiyah Yogyakarta 2022 Article PeerReviewed Ahmad, Mohammad Yusof and Wong, Kelly Kai Seng and Kamarulzaman, Nitty Hirawaty (2022) Selected factors influencing China's palm oil import demand from Malaysia. Agraris: Journal of Agribusiness and Rural Development Research, 8 (2). pp. 261-274. ISSN 2407-814X; ESSN: 2527-9238 https://journal.umy.ac.id/index.php/ag/article/view/15511 10.18196/agraris.v8i2.15511
spellingShingle Ahmad, Mohammad Yusof
Wong, Kelly Kai Seng
Kamarulzaman, Nitty Hirawaty
Selected factors influencing China's palm oil import demand from Malaysia
title Selected factors influencing China's palm oil import demand from Malaysia
title_full Selected factors influencing China's palm oil import demand from Malaysia
title_fullStr Selected factors influencing China's palm oil import demand from Malaysia
title_full_unstemmed Selected factors influencing China's palm oil import demand from Malaysia
title_short Selected factors influencing China's palm oil import demand from Malaysia
title_sort selected factors influencing china's palm oil import demand from malaysia
url http://psasir.upm.edu.my/id/eprint/103153/
http://psasir.upm.edu.my/id/eprint/103153/
http://psasir.upm.edu.my/id/eprint/103153/