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Crude oil price and food security related variables in Malaysia

Objective – This study analyzes the dynamic relationship between crude oil price and food security related variables (crude palm oil price, exchange rate, food import, food price index, food production index, income per capita and government development expenditure) in Malaysia using a Vector Auto R...

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Main Authors: Applanaidu, Shri Dewi, Azman Aziz, Mukhriz Izraf
Format: Article
Language:English
Published: GATR Enterprise 2015
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/18275/1/GJBSSR%204%201%202015%20332-339.pdf
http://repo.uum.edu.my/18275/
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spelling my.uum.repo.182752016-06-27T07:27:45Z http://repo.uum.edu.my/18275/ Crude oil price and food security related variables in Malaysia Applanaidu, Shri Dewi Azman Aziz, Mukhriz Izraf HC Economic History and Conditions Objective – This study analyzes the dynamic relationship between crude oil price and food security related variables (crude palm oil price, exchange rate, food import, food price index, food production index, income per capita and government development expenditure) in Malaysia using a Vector Auto Regressive (VAR) model. Methodology/Technique – The data covered the period of 1980-2014. Impulse response functions (IRFs) was applied to examine what will be the results of crude oil price changes to the variables in the model. To explore the impact of variation in crude oil prices on the selected food security related variables forecast error variance decomposition (VDC) was employed.Findings – Findings from IRFs suggest there are positive effects of oil price changes on food import and food price index. The VDC analyses suggest that crude oil price changes have relatively largest impact on real crude palm oil price, food import and food price index.This study would suggest to revisiting the formulation of food price policy by including appropriate weight of crude oil price volatility.In terms of crude oil palm price determination, the volatility of crude oil prices should be taken into account. Over dependence on food imports also needs to be reduced. Novelty – As the largest response of crude oil price volatility on related food security variables food vouchers can be implemented. Food vouchers have advantages compared to direct cash transfers since it can be targeted and can be restricted to certain types of products and group of people. Hence, it can act as a better aid compared cash transfers.Type of Paper: Empirical GATR Enterprise 2015-10 Article PeerReviewed application/pdf en http://repo.uum.edu.my/18275/1/GJBSSR%204%201%202015%20332-339.pdf Applanaidu, Shri Dewi and Azman Aziz, Mukhriz Izraf (2015) Crude oil price and food security related variables in Malaysia. Global Journal of Business and Social Science Review, 4 (1). pp. 332-339. ISSN 2289-8506
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Applanaidu, Shri Dewi
Azman Aziz, Mukhriz Izraf
Crude oil price and food security related variables in Malaysia
description Objective – This study analyzes the dynamic relationship between crude oil price and food security related variables (crude palm oil price, exchange rate, food import, food price index, food production index, income per capita and government development expenditure) in Malaysia using a Vector Auto Regressive (VAR) model. Methodology/Technique – The data covered the period of 1980-2014. Impulse response functions (IRFs) was applied to examine what will be the results of crude oil price changes to the variables in the model. To explore the impact of variation in crude oil prices on the selected food security related variables forecast error variance decomposition (VDC) was employed.Findings – Findings from IRFs suggest there are positive effects of oil price changes on food import and food price index. The VDC analyses suggest that crude oil price changes have relatively largest impact on real crude palm oil price, food import and food price index.This study would suggest to revisiting the formulation of food price policy by including appropriate weight of crude oil price volatility.In terms of crude oil palm price determination, the volatility of crude oil prices should be taken into account. Over dependence on food imports also needs to be reduced. Novelty – As the largest response of crude oil price volatility on related food security variables food vouchers can be implemented. Food vouchers have advantages compared to direct cash transfers since it can be targeted and can be restricted to certain types of products and group of people. Hence, it can act as a better aid compared cash transfers.Type of Paper: Empirical
format Article
author Applanaidu, Shri Dewi
Azman Aziz, Mukhriz Izraf
author_facet Applanaidu, Shri Dewi
Azman Aziz, Mukhriz Izraf
author_sort Applanaidu, Shri Dewi
title Crude oil price and food security related variables in Malaysia
title_short Crude oil price and food security related variables in Malaysia
title_full Crude oil price and food security related variables in Malaysia
title_fullStr Crude oil price and food security related variables in Malaysia
title_full_unstemmed Crude oil price and food security related variables in Malaysia
title_sort crude oil price and food security related variables in malaysia
publisher GATR Enterprise
publishDate 2015
url http://repo.uum.edu.my/18275/1/GJBSSR%204%201%202015%20332-339.pdf
http://repo.uum.edu.my/18275/
_version_ 1644282419714457600
score 13.211869

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