A market model for Malaysian palm oil industry
1994
Mad Nasir Shamsudin | Fatimah Mohd Arshad | Zainal Abidin Mohamed (Pertanian Malaysia Univ., Serdang, Selangor (Malaysia). Dept. of Agricultural Economics) | Abdul Rahman Lubis
The study develops an econometric model for Malaysian palm oil market. The model consists of supply, demand, stock and price components. The supply component takes into account the role of rubber prices and replanting grant in production decision. Attempts are made to differentiate the supply response of estate and smallholder sectors. Both domestic and export demands for palm oil are estimated. Seven main export destinations of Malaysian palm oil are selected in estimating export demand function. The model is then validated based on its predictive power.
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