Keywords
palm oil exports
price estimation
income elasticity
price estimation
income elasticity
Abstract
There has been a shift in the destination of Indonesian palm oil exports from Europeanmarkets to India and China in recent years. This article aims to estimate the demand of these two countries for Indonesian palm oil exports. This article argues that price supporting policies play an important role behind the increase in the quantity of the demand for Indonesian palm oil exports. This article concludes that it is crucial to disaggregate palm oil data into crude palm oil data and refined palm oil products. This is because it can contribute significantly to improve the results of the price estimation and income elasticity of Indonesian palm oil export for both India and China.
References
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Malaysian Palm Oil Refiner Association (n.d).“India Oil and Fats Profile”. http://www.poram.org.my/v1/poram/India.pdf (Accessed on November 2011)
Malaysian Palm Oil Refiner Association (n.d). http://www.poram.org.my/v1/poram/China.pdf (Accessed on November 2011)
Niemi, J (2004). “The European Market for ASEAN agricultural exports”. ASEAN Economic Bulletin, 21 (3): 261- 277.
Rifin, A. (2009). “Export Competitiveness of Indonesia’s Palm Oil Product.” Trends in Agriculture Economics., Volume 3., 1: 1-18. http://scialert.net/abstract/?doi=tae.2010.1.18 (November 2010).
Shariff, et al, (2006). “The elasticity of foreign demand for Malaysian Palm Oil.” Oil Palm Industry Economic Journal, Vol.6 No. 2:1-6. http://palmoilis.mpob.gov.my/publications/opiejv6n2-faizah.pdf (February 2010).
United States Department of Agriculture, (2011). Commodities and product: Oilseeds World Market and Trade Archives, October. http://www.fas.usda.gov/oilseeds/circular/2011/Oct/oilseeds_full10-11.pdf (Accessed onNovember 24, 2011)
Yulismi and Siregar, Hermanto, (2007). “Determinant factors of Indonesia palm oil export to major importing countries: an error correction model analysis.” Economics and Finance in Indonesia Vol. 55(1):65-88.
IDE JETRO, (2010). World Trade Atlas Database. Nagoya. International Monetary Fund, (2010). International Financial Statistics Online. http:// www.imfstatistics.org/imf/ (1 August 1, 2010).
Goldstein, Morris, and Khan, Mohsin S., (1985). “Income and Price Effects in Foreign Trade.” Handbook of International Economics, vol.II, ed. R.W. Jones and P.B. Kenen., Chapter 29: 1042-1099. Elsevier Science Publishers B.V.
Malaysian Palm Oil Refiner Association (n.d).“India Oil and Fats Profile”. http://www.poram.org.my/v1/poram/India.pdf (Accessed on November 2011)
Malaysian Palm Oil Refiner Association (n.d). http://www.poram.org.my/v1/poram/China.pdf (Accessed on November 2011)
Niemi, J (2004). “The European Market for ASEAN agricultural exports”. ASEAN Economic Bulletin, 21 (3): 261- 277.
Rifin, A. (2009). “Export Competitiveness of Indonesia’s Palm Oil Product.” Trends in Agriculture Economics., Volume 3., 1: 1-18. http://scialert.net/abstract/?doi=tae.2010.1.18 (November 2010).
Shariff, et al, (2006). “The elasticity of foreign demand for Malaysian Palm Oil.” Oil Palm Industry Economic Journal, Vol.6 No. 2:1-6. http://palmoilis.mpob.gov.my/publications/opiejv6n2-faizah.pdf (February 2010).
United States Department of Agriculture, (2011). Commodities and product: Oilseeds World Market and Trade Archives, October. http://www.fas.usda.gov/oilseeds/circular/2011/Oct/oilseeds_full10-11.pdf (Accessed onNovember 24, 2011)
Yulismi and Siregar, Hermanto, (2007). “Determinant factors of Indonesia palm oil export to major importing countries: an error correction model analysis.” Economics and Finance in Indonesia Vol. 55(1):65-88.