Palm oil industry is an industry that supports Malaysian economy. It triggers economic activities, but due to the uncertainty in the world of economic force, the palm oil prices in Malaysia have a high volatility movement. The volatility movement of palm oil prices is due to many factors such as the prices of other vegetables oil and crude oil. The purpose of this research is to find the main factors that affecting crude palm oil price quantitatively and to overcome the problem by providing an early warning signal in order to prevent huge losses in the future. By employing absolute grey incidence analysis and also correlation, this study calculates the grey incidence degree to determine the co-integration of palm oil prices with other factors which are soybean oil, rapeseed oil, palm kernel oil, coconut oil and crude oil prices towards palm oil prices. It demonstrates that palm kernel oil price has a high relationship between the palm oil prices.
1. Chuangchid, K., Wiboonpongse, A., Sriboonchitta, S. & Chaiboonsri, C. (2012). Factors Affecting Palm Oil Price Based on Extremes Value Approach. DOI: 10.5539/ijms.v4n6p54
2. Edwards, D. P., Hodgson, J. A., Hamer, K. C., Mitchell, S. L., Ahmad, A. H., Cornell, S. J. & Wilcove, D. S. (2010). Wildlife?friendly oil palm plantations fail to protect biodiversity effectively. Conservation Letters, 3(4), 236-242. DOI:10.1111/j.1755-263X.2010.00107.x
3. Goniur, O. (2011). The determinants of Malaysia’s palm oil import. Unpublished doctoral dissertation. Universiti Malaysia Sarawak, Malaysia
4. Liu, S. and Lin, Y. (2006). Grey information: Theory and practical application, London, Springer.
5. Liu, S., Fang, Z. & Lin, Y. (2006). A new definition for the degree of grey incidence, Journal of Grey System, 7(2), 115-22.
6. Liu, S., Forrest, J. & Yang, Y. (2012). A brief introduction to grey systems theory, Grey Systems: Theory and Application, 2(2), 89-104.
7. Li-zhi, C. & Si-feng, L. (2009). The model of new grey incidence and its application. In Grey Systems and Intelligent Services, 2009. GSIS 2009. IEEE International Conference on, 23-26. IEEE. DOI: 10.1007/978-3-642-13938-3_12
8. Nordin, S., Nordin, N. & Ismail, R. (2014). The impact of palm oil price on the Malaysian stock market performance. Journal of Economics & Behavioral Studies, 6(1).
9. Ping, J. & Kejia, C. (2005). Application of grey incidence analysis to economic index time difference analysis. In 2005 Networking, Sensing and Control Proceedings. 247-252. IEEE.
10. Rahman, A. K. & M. P. O.B (2012). Impact of palm oil supply and demand on crude palm oil price behavior. Malaysian Palm Oil Board (MPOB).
11. Roseleena, J., Nursuriati, J., Ahmed, J., & Low, C. Y. (2011). Assessment of palm oil fresh fruit bunches using photogrammetric grading system. International Food Research Journal, 18(3).
12. Sanders, D. J., Balagtas, J.V. & Gruere, G. (2012). Revisiting the palm oil boom in southeast Asia: The role of fuel versus food demand drivers. International Food Policy Research Institute, IFPRI Discussion Paper 01167. Washington, DC.
13. Shakila, S., Noryati, A., & Maheran, J. (2017). Assessing stock market volatility for different sectors in Malaysia. Pertanika Journal of Science and Technology, 25(2), 631-648.
14. Syamsiah, A., Rosma, M., Ajab, A. & Hasamudin, H (2011). Prediction of Physical Properties of Oil Palm Biomass Reinforced Polythelene : Linear Regression Approach. Proceedings of the 3rd International Conference on Computing and Informatics.
15. Wang, Q. & Dang, Y. (2009). Measuring the delay time of Chinese employment Structure based on grey incidence analysis. Proceedings of 2009 IEEE International Conference on Grey Systems & Intelligent Services,10(2), 129-133. IEEE.
16. Yuan, C., Liu, S. & Chen, W. (2010). Grey incidence analysis of the factors which are linear correlative. In International conference on Systems Man and Cybernetics (SMC) 2010, 970-976. IEEE.
In-Text Citation: (Mohamad, 2018)
To Cite this Article: Mohamad, N. (2018). Identifying Factors Affecting Palm Oil Prices Based On Grey Incidence Analysis. International Journal of Academic Research in Business and Social Sciences, 8(11), 13–21.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
