ISSN: 2222-6990
Open access
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.
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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)
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