TY - JOUR
T1 - Import demand for Malaysian palm-based oleochemical in the Netherlands
AU - Hassan, Nur Ain Mohd
AU - Mazlan, Nur Syazwani
AU - Kamil, Nur Nadia
AU - Salleh, Kamalrudin Mohamed
AU - Chioma, Onyegbule Queensley
N1 - Funding Information:
The authors would like to acknowledge Faculty of Economic, University Putra Malaysia for financial support, assistance with particular methodology and for comments that greatly improved the manuscript. The authors would also like to show gratitude to Economics and Industry Development Division of Malaysian Palm Oil Board (MPOB) who provided insight and expertise that greatly assisted the manuscript until it being published. Most importantly, the authors thank to Director General of MPOB for permission to publish this manuscript.
Publisher Copyright:
© Exceling Tech Pub, UK.
PY - 2018
Y1 - 2018
N2 - Malaysia is the second world largest palm oil producer. In 2016, Malaysia has produced 29.3% of world palm oil and 92.6% of the total production has been exported globally. Palm oil products are products that can be refined from the palm oil such as oleochemical and biodiesel. The main destination for Malaysian palm-based oleochemical products export is to the EU. As the Netherlands is the major palm-based oleochemical importer, this study attempts to examine the factors that influenced import demand of Malaysian palm-based oleochemical products in the Netherlands using the Autoregressive Distributed Lag (ARDL) Model. This study used annual data from 1984 to 2016. The results of the bound test indicated that there is a long-run relationship between the variables. The empirical results showed that domestic income, measured by the Gross Domestic Product (GDP) showed positive significant relationship as the GDP increases the demand for palm-based oleochemical from Malaysia also increases, while palm oil prices and total vegetable oils consumption have negative significant relationships with oleochemical demand. The evidence from this study indicated that demand from the Netherlands is significantly strong. Thus, the Malaysian government may need to further improve and reformulate the best strategy and policy to meet up with the increasing demand for palm-based oleochemical in the EU particularly in the Netherlands.
AB - Malaysia is the second world largest palm oil producer. In 2016, Malaysia has produced 29.3% of world palm oil and 92.6% of the total production has been exported globally. Palm oil products are products that can be refined from the palm oil such as oleochemical and biodiesel. The main destination for Malaysian palm-based oleochemical products export is to the EU. As the Netherlands is the major palm-based oleochemical importer, this study attempts to examine the factors that influenced import demand of Malaysian palm-based oleochemical products in the Netherlands using the Autoregressive Distributed Lag (ARDL) Model. This study used annual data from 1984 to 2016. The results of the bound test indicated that there is a long-run relationship between the variables. The empirical results showed that domestic income, measured by the Gross Domestic Product (GDP) showed positive significant relationship as the GDP increases the demand for palm-based oleochemical from Malaysia also increases, while palm oil prices and total vegetable oils consumption have negative significant relationships with oleochemical demand. The evidence from this study indicated that demand from the Netherlands is significantly strong. Thus, the Malaysian government may need to further improve and reformulate the best strategy and policy to meet up with the increasing demand for palm-based oleochemical in the EU particularly in the Netherlands.
KW - Autoregressive distributed lag
KW - Gross domestic product
KW - Palm oil import demand
KW - Palm oil price
KW - Palm-based oleochemical
KW - The Netherlands
UR - https://www.scopus.com/pages/publications/85052550916
U2 - 10.59160/ijscm.v7i4.2381
DO - 10.59160/ijscm.v7i4.2381
M3 - Article
AN - SCOPUS:85052550916
SN - 2051-3771
VL - 7
SP - 216
EP - 222
JO - International Journal of Supply Chain Management
JF - International Journal of Supply Chain Management
IS - 4
ER -