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

Authors

KP Prabheesh, Indian institute of technology Hyderabad, IndiaFollow
Nisful Laila, Airlangga University, IndonesiaFollow

Document Type

Article

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.

Recommended Citation

Prabheesh, KP and Laila, Nisful (2020) "ASYMMETRIC EFFECT OF CRUDE OIL AND PALM OIL PRICES ON ECONOMIC GROWTH: EVIDENCE FROM INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 23: No. 2, Article 3.
DOI: https://doi.org/10.21098/bemp.v23i1.1304
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss2/3

First Page

253

Last Page

268

Creative Commons License

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

Country

Indonesia

Affiliation

Airlangga University