The production of crude palm oil in Malaysia

Palm oil production contributes significantly to the Malaysian economy. Malaysia currently holds the position as the world's second-largest palm oil producer after Indonesia. This study intends to empirically test the Cobb- Douglas (C-D) production function for the palm oil production sector in...

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Main Authors: A., Norhidayu, Mazlan, Nur Syazwani, Radzil, R. H. M., Amin, I. Z. M., N., Balu
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/14170/
http://psasir.upm.edu.my/id/eprint/14170/1/%282%29%20IJEM%20%28S3%29%202017%20R2%20The%20Production%20of%20Crude%20Palm%20Oil%20in%20Malaysia.pdf
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author A., Norhidayu
Mazlan, Nur Syazwani
Radzil, R. H. M.
Amin, I. Z. M.
N., Balu
author_facet A., Norhidayu
Mazlan, Nur Syazwani
Radzil, R. H. M.
Amin, I. Z. M.
N., Balu
author_sort A., Norhidayu
building UPM Institutional Repository
collection Online Access
description Palm oil production contributes significantly to the Malaysian economy. Malaysia currently holds the position as the world's second-largest palm oil producer after Indonesia. This study intends to empirically test the Cobb- Douglas (C-D) production function for the palm oil production sector in Malaysia with the validity of C-D's assumptions. The significance of factors such as capital, labour and utilisation rate in the production of Crude Palm Oil (CPO) is also tested in the study. The data on the productivity of the Palm Oil (PO) mills are collected from the Malaysian Palm Oil Board (MPOB). The methods of Least Square (LS) and robustness check are carried out in the estimation of the production function. The results show a positive and significant relationship between the production of CPO and labour, capital, and the utilisation rate. This study suggests that increases in capital, labour employment and the utilisation rate will boost the production of CPO in Malaysia.
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spelling upm-141702018-10-05T07:45:18Z http://psasir.upm.edu.my/id/eprint/14170/ The production of crude palm oil in Malaysia A., Norhidayu Mazlan, Nur Syazwani Radzil, R. H. M. Amin, I. Z. M. N., Balu Palm oil production contributes significantly to the Malaysian economy. Malaysia currently holds the position as the world's second-largest palm oil producer after Indonesia. This study intends to empirically test the Cobb- Douglas (C-D) production function for the palm oil production sector in Malaysia with the validity of C-D's assumptions. The significance of factors such as capital, labour and utilisation rate in the production of Crude Palm Oil (CPO) is also tested in the study. The data on the productivity of the Palm Oil (PO) mills are collected from the Malaysian Palm Oil Board (MPOB). The methods of Least Square (LS) and robustness check are carried out in the estimation of the production function. The results show a positive and significant relationship between the production of CPO and labour, capital, and the utilisation rate. This study suggests that increases in capital, labour employment and the utilisation rate will boost the production of CPO in Malaysia. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/14170/1/%282%29%20IJEM%20%28S3%29%202017%20R2%20The%20Production%20of%20Crude%20Palm%20Oil%20in%20Malaysia.pdf A., Norhidayu and Mazlan, Nur Syazwani and Radzil, R. H. M. and Amin, I. Z. M. and N., Balu (2017) The production of crude palm oil in Malaysia. International Journal of Economics and Management, 11 (S3). pp. 591-606. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol11noS3/(2)%20IJEM%20(S3)%202017%20R2%20The%20Production%20of%20Crude%20Palm%20Oil%20in%20Malaysia.pdf
spellingShingle A., Norhidayu
Mazlan, Nur Syazwani
Radzil, R. H. M.
Amin, I. Z. M.
N., Balu
The production of crude palm oil in Malaysia
title The production of crude palm oil in Malaysia
title_full The production of crude palm oil in Malaysia
title_fullStr The production of crude palm oil in Malaysia
title_full_unstemmed The production of crude palm oil in Malaysia
title_short The production of crude palm oil in Malaysia
title_sort production of crude palm oil in malaysia
url http://psasir.upm.edu.my/id/eprint/14170/
http://psasir.upm.edu.my/id/eprint/14170/
http://psasir.upm.edu.my/id/eprint/14170/1/%282%29%20IJEM%20%28S3%29%202017%20R2%20The%20Production%20of%20Crude%20Palm%20Oil%20in%20Malaysia.pdf