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A model for the palm oil market in Nigeria: an econometrics approach


Egwuma, Henry and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin and Kamarulzaman, Nitty Hirawaty and Wong, Kelly Kai Seng (2016) A model for the palm oil market in Nigeria: an econometrics approach. International Journal of Food and Agricultural Economics, 4 (2). pp. 69-85. ISSN 2147-8988; ESSN: 2149-3766


The aim of this study is to formulate and estimate a model for the palm oil market in Nigeria with a view to identifying principal factors that shape the Nigerian palm oil industry. Four structural equation models comprising palm oil production, import demand, domestic demand and producer price have been estimated using the autoregressive distributed lag (ARDL) cointegration approach over the 1970 to 2011 period. The results reveal that significant factors that influence the Nigerian palm oil industry include the own price, technological improvements, and income level. Government expenditure on agricultural development is also an important determinant, which underscores the need for government support in agriculture. Our model provides a useful framework for analyzing the effects of changes in major exogenous variables such as income or import tariff on the production, demand, and price of palm oil.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Agriculture
Publisher: IJFAEC
Keywords: Palm oil; Production; Demand; Cointegration; Error-correction model; Speed of adjustment
Depositing User: Nabilah Mustapa
Date Deposited: 31 Jul 2017 09:51
Last Modified: 31 Jul 2017 09:51
URI: http://psasir.upm.edu.my/id/eprint/56427
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