Economic Analysis of Palm Oil Demand in Selected Major Importing Countries

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.