THE ROLE OF PALM OIL PRICE IN INDONESIA’S AGGREGATE DEMAND

Authors

Susan Sunila Sharma, Deakin University, AustraliaFollow

Document Type

Article

Abstract

This study examines the predictability of Indonesia’s aggregate demand using palm oil price. We conduct both in-sample and out-of-sample forecasting evaluations. These evaluations are based on time-series quarterly and monthly data frequencies and cover three different forecasting horizons. Overall, we find that palm oil price predicts real GDP, consumption expenditure, total investment, net spending from overseas, while predictability of government spending is sensitive to the use of forecasting approaches and horizons.

Recommended Citation

Sharma, Susan Sunila (2020) "THE ROLE OF PALM OIL PRICE IN INDONESIA’S AGGREGATE DEMAND," Bulletin of Monetary Economics and Banking: Vol. 23: No. 2, Article 1.
DOI: https://doi.org/10.21098/bemp.v23i2.1305
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss2/1

First Page

161

Last Page

178

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Australia

Affiliation

Deakin University