Oil Palm Industry Economic Journal Vol. 20 (2) September 2020 p. 9-15

The Transportation Sector’s Role in the Growth of the Upstream Oil Palm Sector

Muhammad Khalid Ahmad Kamal**; M. Yusof Saari**; Muhammad Daaniyall Abd Rahman** and Anitha Rosland*
Received: 3 Oktober 2019   Accepted: 14 April 2020   Available Online: 29 September 2020


The transportation sector plays a crucial role in supporting the growth of the oil palm sector, whereby an efficient transportation system provides more economic and social opportunities. The relationship between these two sectors can be examined through their inter-sectoral linkages. However, the lack of exposition on the role of sectoral linkages of the transportation sector would disregard the importance of this sector in the growth of the oil palm sector. This study attempts to analyse the role of the transportation sector, comprising land, water, and air transport in the oil palm sector’s growth by studying the inter-industry linkages and production-inducing effects. The results indicate that the transportation sector makes a low contribution to the growth of the upstream oil palm sector.

Keywords: input-output analysis, hypothetical extraction method, oil palm sector, transportation sector, inter-linkages.

About Post Author

* Department of Economics,
Faculty of Economics and Management,
Universiti Putra Malaysia,
43400 UPM Serdang, Selangor,
E-mail: muhd.khalid99@gmail.com

** Institute of Agricultural and Food Policy
Studies, Universiti Putra Malaysia,
Putra Infoport, Jalan Kajang-Puchong,
43400 UPM Serdang, Selangor,