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

Article history:
Received: 3 Oktober 2019
Accepted: 14 April 2020

Available online: 29 September 2020

Page number: 9-15

Author: Muhammad Khalid Ahmad Kamal**; M. Yusof Saari**; Muhammad Daaniyall Abd Rahman** and Anitha Rosland*

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.

* Department of Economics,
Faculty of Economics and Management,
Universiti Putra Malaysia,
43400 UPM Serdang, Selangor,
Malaysia.
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,
Malaysia