System Dynamics Analysis of the Determinants of the Malaysian Palm Oil Price

This article investigates the major determinants of the Malaysian palm oil price using a system dynamics approach. System dynamics methodology is very relevant for examining the feedback relationships, non-linearity and delays exist in palm oil market. It helps understand the palm oil market structu...

Full description

Saved in:
Bibliographic Details
Published inAmerican journal of applied sciences Vol. 12; no. 5; pp. 355 - 362
Main Authors Mohammadi, Sahra, Arshad, Fatimah Mohamed, Bala, Bilash Kanti, Ibragimov, Abdulla
Format Journal Article
LanguageEnglish
Published 2015
Subjects
Biodiesel
Crude oil
Delay
Determinants
Markets
Palm oil
Simulation
System dynamics
Online AccessGet full text

Cover

More Information
Summary:This article investigates the major determinants of the Malaysian palm oil price using a system dynamics approach. System dynamics methodology is very relevant for examining the feedback relationships, non-linearity and delays exist in palm oil market. It helps understand the palm oil market structure and the resultant behavior and performance particularly On crude Palm Oil (CPO) price. The simulation results indicate that the Malaysian CPO price is significantly affected by the local CPO production, as well as the world CPO and soybean oil prices. It is also found that CPO price is less sensitive to biodiesel production, as biodiesel currently accounts for small portion of total CPO demand in Malaysia.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 23
ISSN:1546-9239
1554-3641
DOI:10.3844/ajassp.2015.355.362