Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin

Palm oil currently is the most consumed edible oil the world, with Malaysia and Indonesia being top two producers in the worlds, however the changes to oil palm as the main commodity in Malaysia had decreased the contribution and total number of estate rubber in Malaysia. The price shocks may affect...

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Main Author:	Shaharudin, Muhammad Naim
Format:	Student Project
Published:	Faculty of Plantation and Agrotechnology 2019
Subjects:	Agricultural economics Rubber industry and trade Commodities. Commercial products. Generic products
Online Access:	http://ir.uitm.edu.my/id/eprint/24303/

id	uitm-24303
recordtype	eprints
spelling	uitm-243032019-05-28T06:43:35Z http://ir.uitm.edu.my/id/eprint/24303/ Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin Shaharudin, Muhammad Naim Agricultural economics Rubber industry and trade Commodities. Commercial products. Generic products Palm oil currently is the most consumed edible oil the world, with Malaysia and Indonesia being top two producers in the worlds, however the changes to oil palm as the main commodity in Malaysia had decreased the contribution and total number of estate rubber in Malaysia. The price shocks may affect the health of the Malaysian economy since Malaysia is a net exporter of the two commodities. Therefore, the current research aims to examine whether the prices of these commodities affect the economic growth of Malaysia both in the long run and short run. The data collected within 36 years (1980-2016) for price of oil palm, price of rubber and annual economy growth of Malaysia from Malaysia Palm Oil Board (MPOB). The data been analyzed by E-Views through unit root and co-integration test. The result of the research reveals that both variable only has short run relationship toward economy growth and from co– integration test show price of palm oil has positive relationship and statistically significant and affected the economy growth, meanwhile from Granger Causality Test show that price of rubber affected the Malaysian’s economy growth. The conclusion can be drawn that price shock on palm oil and rubber price will affected the economy growth of Malaysia. Government of Malaysia needs to take an action in policy maker, price floor and make variety production of crop through Research and Development. Faculty of Plantation and Agrotechnology 2019 Student Project NonPeerReviewed Shaharudin, Muhammad Naim (2019) Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
topic	Agricultural economics Rubber industry and trade Commodities. Commercial products. Generic products
spellingShingle	Agricultural economics Rubber industry and trade Commodities. Commercial products. Generic products Shaharudin, Muhammad Naim Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
description	Palm oil currently is the most consumed edible oil the world, with Malaysia and Indonesia being top two producers in the worlds, however the changes to oil palm as the main commodity in Malaysia had decreased the contribution and total number of estate rubber in Malaysia. The price shocks may affect the health of the Malaysian economy since Malaysia is a net exporter of the two commodities. Therefore, the current research aims to examine whether the prices of these commodities affect the economic growth of Malaysia both in the long run and short run. The data collected within 36 years (1980-2016) for price of oil palm, price of rubber and annual economy growth of Malaysia from Malaysia Palm Oil Board (MPOB). The data been analyzed by E-Views through unit root and co-integration test. The result of the research reveals that both variable only has short run relationship toward economy growth and from co– integration test show price of palm oil has positive relationship and statistically significant and affected the economy growth, meanwhile from Granger Causality Test show that price of rubber affected the Malaysian’s economy growth. The conclusion can be drawn that price shock on palm oil and rubber price will affected the economy growth of Malaysia. Government of Malaysia needs to take an action in policy maker, price floor and make variety production of crop through Research and Development.
format	Student Project
author	Shaharudin, Muhammad Naim
author_facet	Shaharudin, Muhammad Naim
author_sort	Shaharudin, Muhammad Naim
title	Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
title_short	Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
title_full	Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
title_fullStr	Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
title_full_unstemmed	Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin
title_sort	impact of price shock of palm oil and rubber toward economy growth of malaysia / muhammad naim shaharudin
publisher	Faculty of Plantation and Agrotechnology
publishDate	2019
url	http://ir.uitm.edu.my/id/eprint/24303/
first_indexed	2023-09-18T23:12:18Z
last_indexed	2023-09-18T23:12:18Z
_version_	1777418882819031040

Impact of price shock of palm oil and rubber toward economy growth of Malaysia / Muhammad Naim Shaharudin

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