Open AccessASYMMETRIC EFFECT OF CRUDE OIL AND PALM OIL PRICES ON ECONOMIC GROWTH: EVIDENCE FROM INDONESIA
Author(s) -
K.P. Prabheesh,
Nisful Laila
Publication year - 2020
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 2460-9196
DOI - 10.21098/bemp.v23i1.1304
Subject(s) - cointegration , distributed lag , economics , palm oil , crude oil , petroleum , agricultural economics , monetary economics , gasoline , crack spread , oil price , error correction model , econometrics , environmental science , agricultural science , chemistry , petroleum engineering , organic chemistry , engineering
This paper empirically examines the impact of the price of crude oil petrol and palm oil on Indonesia's economic growth. Using quarterly data from 2000 to 2019 and linear, and non-linear autoregressive distributed lag (ARDL) model to cointegration, the study finds 1) A significant non-linear effect of oil prices on country's output. 2) The palm oil price changes have a higher effect on the country's output as compared to petroleum prices. 3) A decline in palm price in the international market leads to a higher adverse effect on the country's economic growth as compared to petroleum prices.