Macroeconomics Factors Affecting Net Exports of Oil Palm Industry in Malaysia

This quantitative study investigates the impact of oil palm production, oil palm pricing, inflation, and GDP growth rate on the net exports of Malaysia's oil palm industry. This research is aimed at analyzing how the net export of oil palm relates to certain macroeconomic variables. This study has employed multiple regression analysis through Ordinary Least Squares for 26 years of time series data from 1996 to 2020 in Malaysia. The findings from this study improve our understanding of the major factors contributing to net exports in the oil palm industry. Palm oil production, price, as well as GDP growth, drive net export of palm oil in Malaysia found during this research. An increase in production leads to the reduced amount of palm oil exported, all other things remaining constant. Conversely, inflation and GDP growth are major drivers behind the increased net export of palm oil.