ASYMMETRIC EFFECT OF CRUDE OIL AND PALM OIL PRICES ON ECONOMIC GROWTH: EVIDENCE FROM INDONESIA

K.P. Prabheesh () and Nisful Laila ()
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K.P. Prabheesh: Indian Institute of Technology Hyderabad
Nisful Laila: Universitas Airlangga

Bulletin of Monetary Economics and Banking, 2020, vol. 23, issue 2, 253-268

Abstract: This paper empirically examines the impact of the price of crude oil petrol and palm oil on Indonesia's economic growth. Using quarterly data from 2000 to 2019 and linear, and non-linear autoregressive distributed lag (ARDL) model to cointegration, the study finds 1) A significant non-linear effect of oil prices on country's output. 2) The palm oil price changes have a higher effect on the country's output as compared to petroleum prices. 3) A decline in palm price in the international market leads to a higher adverse effect on the country's economic growth as compared to petroleum prices.

Keywords: Oil price; Palm oil; Non-linear autoregressive distributed lag model (search for similar items in EconPapers)
JEL-codes: C22 E30 E31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:23:y:2020:i:2f:p:253-268

DOI: 10.21098/bemp.v23i1.1304

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