Oil Palm Industry Economic Journal Vol. 7 (1) March 2007 p. 9-17

Impact Assessment of Liberalizing Trade on Malaysian Crude Palm Oil

Basri Abdul Talib; Mohd Fauzi Mohd Jani; Mohd Noor Mamat and Rosli Zakaria
Received:    Accepted:    Available Online:


This study analyses the impact of lifting the export tax on Malaysian crude palm oil. In the first section, the structural equation is developed incorporating Malaysian palm oil products, especially focusing on crude palm oil (CPO) and processed palm oil (PPO). The study deals with the conceptual model and dynamic specification of the Malaysian palm oil market model as regards the oil palm area, palm oil supply, domestic consumption, imports and exports of palm oil products, stocks and domestic price relationships. The model also included the Indonesian palm oil market model as well as world palm oil price relationships due to the significant impact of both factors on Malaysian palm oil in international trade.

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