Economic Journal of Emerging Markets
Volume 11 Issue 2, 2019

Financial development and performance of palm oil industry in Malaysia

Syajarul Imna Mohd Amin (Center for Sustainable and Inclusive Development, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Malaysia)
Aisyah Abdul-Rahman (Center for Sustainable and Inclusive Development, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Malaysia)
Hawati Janor (Center for Sustainable and Inclusive Development, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Malaysia)
Abdullah Khairi Mohd Asri (Center for Sustainable and Inclusive Development, Faculty of Economics and Management, Universiti Kebangsaan Malaysia,Malaysia)
Darmawati Muchtar (Faculty of Economics and Business, Universitas Malikussaleh, Aceh, Indonesia)



Article Info

Publish Date
03 Oct 2019

Abstract

The finance-growth nexus is gaining credence among researchers. Growing research interest in developing evidences for different economic sectors has ignited this study to examine the topic in agricultural sector for Malaysia. The analysis focuses on palm oil industry using data for the period 1981 to 2017 using the Autoregressive Distributed Lagged (ARDL-bounds) approach. Financial development measures financial depth, accessibility, efficiency, and stability. Other variables include production factors such as land, labour and capital. Findings/Originality: The findings show that the depth of financial market has positive impact on palm oil industry performance both in the short run and long run, though the depth of the financial institutions only take effect in the long run. Meanwhile the financial accessibility, efficiency and stability have no significant effect on the productivity of the industry. It implies that the equity market development is more relevant to affect the palm oil industry compared to credit market development.

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Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...