Oil Palm Industry Economic Journal Vol. 19 (2) September 2019 p. 17-25

Economic Analysis of Palm Oil Demand in Selected Major Importing Countries

Kalsom Zakaria*and Balu Nambiappan*
Received: 12 Feb. 2019   Accepted: 18 March 2019   Available Online: 13 Sept. 2019


This study attempts to examine factors influencing the demand for palm oil in selected major markets (India, EU, China, Pakistan and Nigeria). The study employed the Autoregressive Distributed Lag (ARDL) method on data collected for the period 1980 to 2017. The bound test indicates that there are long-run relationships between the studied variables. The empirical results show that Gross Domestic Product (GDP), palm oil price, and soyabean oil price, production and crushing capacity are significant determinants of palm oil demand.

Keywords: palm oil importers, ARDL, error correction models.

About Post Author


* Malaysian Palm Oil Board,
6 Persiaran Institusi,Bandar Baru Bangi,
43000 Kajang, Selangor, Malaysia.

E-mail: kalsom@mpob.gov.my