Macroeconomic factors that affect crude palm oil price in Malaysia / Azlan Taha Baharim

• Main Author: Baharim, Azlan Taha
• Format: Student Project
• Language: English
• Published: 2019
• Subjects: Petroleum industry and trade; Money and prices. Inflation. Deflation. Purchasing power
• Online Access: https://ir.uitm.edu.my/id/eprint/48874/1/48874.pdf; https://ir.uitm.edu.my/id/eprint/48874/

Crude palm oil (CPO) contributes significantly to the Malaysian economy. Malaysia currently holds the position as the world's second-largest palm oil producer after Indonesia. Malaysia and Indonesia are the largest and second largest producers and exporters of palm oil products in the world where together they contribute 83.5% of production and 89.6% of palm oil trade in the world. Both countries export CPO and processed palm oil (PPO). This research will study the macroeconomic factors that affect CPO price in Malaysia from 1999 to 2018. Through this research, the researcher can examine the relationships between the dependent variable, CPO price and independent variables, Exchange rate, Inflation, Money Supply and Gross Domestic Product (GDP). The research uses secondary data collected from the World Bank and Data stream, and applies Correlation Test, Descriptive Analysis, Augmented Dickey-Fuller test (ADF), Normality Test and Regression Analysis. Through this research, the researcher can conclude the findings and correlation between macroeconomic factors with CPO price in Malaysia.