Asymmetric adjustments in the thai palm oil market
Drastic movements of global commodity prices and their impact on the Thai palm oil market is a major concern due to Thailand being the third largest producer of crude palm oil (CPO). Although the country is not a net importer, global price changes of the commodity can transmit to domestic markets fo...
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| Format: | Article |
| Language: | English |
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Kasetsart University
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/87982/ http://psasir.upm.edu.my/id/eprint/87982/1/ABSTRACT.pdf |
| _version_ | 1848860533161197568 |
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| author | Songsiengchai, Patchaya Sidique, Shaufique Fahmi Djama, Marcel Wan Ngah, Wan Azman Saini |
| author_facet | Songsiengchai, Patchaya Sidique, Shaufique Fahmi Djama, Marcel Wan Ngah, Wan Azman Saini |
| author_sort | Songsiengchai, Patchaya |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Drastic movements of global commodity prices and their impact on the Thai palm oil market is a major concern due to Thailand being the third largest producer of crude palm oil (CPO). Although the country is not a net importer, global price changes of the commodity can transmit to domestic markets for palm oil products. This paper analyzed the transmission of Malaysian CPO and world crude oil price changes to the changes in the Thai CPO price using an asymmetric error correction model. The price data used in this
paper covers the period from January 1996 to September 2015. The findings showed that the speed of adjustments towards long-run equilibrium were asymmetric and the effects of the world prices on Thai CPO price were significant in both positive and negative deviations. This result calls for policy measures to mitigate the impact of global price movements because CPO is an essential intermediate input in various products and any changes in the Thai CPO price definitely affects the welfare of domestic consumers. |
| first_indexed | 2025-11-15T12:46:45Z |
| format | Article |
| id | upm-87982 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:46:45Z |
| publishDate | 2020 |
| publisher | Kasetsart University |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-879822022-05-24T07:40:19Z http://psasir.upm.edu.my/id/eprint/87982/ Asymmetric adjustments in the thai palm oil market Songsiengchai, Patchaya Sidique, Shaufique Fahmi Djama, Marcel Wan Ngah, Wan Azman Saini Drastic movements of global commodity prices and their impact on the Thai palm oil market is a major concern due to Thailand being the third largest producer of crude palm oil (CPO). Although the country is not a net importer, global price changes of the commodity can transmit to domestic markets for palm oil products. This paper analyzed the transmission of Malaysian CPO and world crude oil price changes to the changes in the Thai CPO price using an asymmetric error correction model. The price data used in this paper covers the period from January 1996 to September 2015. The findings showed that the speed of adjustments towards long-run equilibrium were asymmetric and the effects of the world prices on Thai CPO price were significant in both positive and negative deviations. This result calls for policy measures to mitigate the impact of global price movements because CPO is an essential intermediate input in various products and any changes in the Thai CPO price definitely affects the welfare of domestic consumers. Kasetsart University 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/87982/1/ABSTRACT.pdf Songsiengchai, Patchaya and Sidique, Shaufique Fahmi and Djama, Marcel and Wan Ngah, Wan Azman Saini (2020) Asymmetric adjustments in the thai palm oil market. Kasetsart Journal - Social Sciences, 41 (1). 220 - 225. ISSN 2452-3151 https://so04.tci-thaijo.org/index.php/kjss/article/view/231630 10.1016/j.kjss.2018.05.0182452-3151 |
| spellingShingle | Songsiengchai, Patchaya Sidique, Shaufique Fahmi Djama, Marcel Wan Ngah, Wan Azman Saini Asymmetric adjustments in the thai palm oil market |
| title | Asymmetric adjustments in the thai palm oil market |
| title_full | Asymmetric adjustments in the thai palm oil market |
| title_fullStr | Asymmetric adjustments in the thai palm oil market |
| title_full_unstemmed | Asymmetric adjustments in the thai palm oil market |
| title_short | Asymmetric adjustments in the thai palm oil market |
| title_sort | asymmetric adjustments in the thai palm oil market |
| url | http://psasir.upm.edu.my/id/eprint/87982/ http://psasir.upm.edu.my/id/eprint/87982/ http://psasir.upm.edu.my/id/eprint/87982/ http://psasir.upm.edu.my/id/eprint/87982/1/ABSTRACT.pdf |