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292299

Analysis of Indonesian palm oil export supply to Egypt: error correction model approach

Article

Last updated: 04 Jan 2025

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Tags

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Abstract

Palm oil is Indonesia's main export plantation commodity and has many economic contributions. The prospect of palm oil in the world vegetable oil trade is up-and-coming, prompting the Indonesian government to spur export palm oil development. Indonesian palm oil exports to Egypt are expected to fulfill the strong demand for various food and non-food applications of palm oil for Egyptian domestic market needs. This article describes the most crucial determinant influencing the Indonesian palm oil export supply to Egypt. The current study overcomes the problem of spurious regression and non-stationary time series data through cointegration. The research involves testing the existence of a long-term equilibrium relationship between the variables and estimating an Error Correction Model (ECM). The results showed that there was a long-term equilibrium relationship between the variables. The findings show that the Indonesian palm oil export supply to Egypt is significantly influenced by international prices, domestic production volume, interest rates, and the Rupiah exchange rate against the Egyptian Pound. The policy recommendation to maintain the exchange rate at a reasonable level needs to be carried out to increase Indonesian palm oil exports to Egypt. On the other hand, a low-interest rate can be an alternative to promoting policies to increase exports.

DOI

10.21608/ejar.2023.178107.1311

Keywords

cointegration, Egypt, Error Correction Model, Export, palm oil

Authors

First Name

Prima

Last Name

Oktaviana

MiddleName

-

Affiliation

Department of Magister Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia

Email

just.oktaviana@gmail.com

City

Bogor

Orcid

-

First Name

Umi Barokah

Last Name

Darsono

MiddleName

-

Affiliation

Department of Magister Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret, Indonesia

Email

-

City

-

Orcid

-

Volume

101

Article Issue

2

Related Issue

41113

Issue Date

2023-07-01

Receive Date

2022-12-01

Publish Date

2023-07-01

Page Start

274

Page End

281

Print ISSN

1110-6336

Online ISSN

2812-4936

Link

https://ejar.journals.ekb.eg/article_292299.html

Detail API

https://ejar.journals.ekb.eg/service?article_code=292299

Order

3

Type

Original Article

Type Code

1,041

Publication Type

Journal

Publication Title

Egyptian Journal of Agricultural Research

Publication Link

https://ejar.journals.ekb.eg/

MainTitle

Analysis of Indonesian palm oil export supply to Egypt: error correction model approach

Details

Type

Article

Created At

24 Dec 2024