On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry
The Covid-19 pandemic has led to a surge in demand for oleochemicals, due to the increased demand for cleaning and disinfectants products. Since Malaysia is one of the world's largest palm oil producers, the demand for oleochemicals will be a key driver supporting the Malaysian palm oil industr...
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| Format: | Article |
| Language: | English |
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Elsevier
2022-11-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844022031917 |
| _version_ | 1811321692932276224 |
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| author | Norashida Othman Mohd Subri Tahir Leylawati Joremi |
| author_facet | Norashida Othman Mohd Subri Tahir Leylawati Joremi |
| author_sort | Norashida Othman |
| collection | DOAJ |
| description | The Covid-19 pandemic has led to a surge in demand for oleochemicals, due to the increased demand for cleaning and disinfectants products. Since Malaysia is one of the world's largest palm oil producers, the demand for oleochemicals will be a key driver supporting the Malaysian palm oil industry. Palm oil is used in millions of products, from foods to soaps, personal care products cosmetics, and biodiesel feedstock. Currently, palm oil related exports are still highly dependent on the upstream segments such as crude palm oil (CPO), with a total contribution to the overall industry of 81.4%. In comparison, that downstream contribution is still low at about 18.6%. It is thus important to expand the production and export of high-value-added palm oil downstream products, including oleochemicals products. Therefore, this study aims to assess Malaysia's relative competitiveness in oleochemical products as compared to the main oil and fat producing countries - namely Indonesia, China, the European Union (EU) member states, the United States and Argentina. We examine the trade competitiveness by using the Revealed Trade Advantage (RTA) developed by Vollrath (1991) and utilizing yearly data spanning from 1999 until 2019. We also analyze the duration of comparative advantage using Kaplan-Meier Analysis. The results indicate that Malaysia has higher and more stable trade advantages relative to other main producers of oleochemical products. |
| first_indexed | 2024-04-13T13:22:11Z |
| format | Article |
| id | doaj.art-d0296ce91c3d4f9ab7a4ff8df641863d |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-13T13:22:11Z |
| publishDate | 2022-11-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-d0296ce91c3d4f9ab7a4ff8df641863d2022-12-22T02:45:17ZengElsevierHeliyon2405-84402022-11-01811e11903On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industryNorashida Othman0Mohd Subri Tahir1Leylawati Joremi2Faculty of Business and Management, University Teknologi MARA, Puncak Alam Campus, 42300 Selangor, Malaysia; Corresponding authors.Faculty of Business and Management, Universiti Teknologi MARA, Cawangan Pulau Pinang, Kampus Permatang Pauh, 13500 Pulau Pinang, Malaysia; Corresponding authors.Faculty of Business and Management, University Teknologi MARA, Puncak Alam Campus, 42300 Selangor, MalaysiaThe Covid-19 pandemic has led to a surge in demand for oleochemicals, due to the increased demand for cleaning and disinfectants products. Since Malaysia is one of the world's largest palm oil producers, the demand for oleochemicals will be a key driver supporting the Malaysian palm oil industry. Palm oil is used in millions of products, from foods to soaps, personal care products cosmetics, and biodiesel feedstock. Currently, palm oil related exports are still highly dependent on the upstream segments such as crude palm oil (CPO), with a total contribution to the overall industry of 81.4%. In comparison, that downstream contribution is still low at about 18.6%. It is thus important to expand the production and export of high-value-added palm oil downstream products, including oleochemicals products. Therefore, this study aims to assess Malaysia's relative competitiveness in oleochemical products as compared to the main oil and fat producing countries - namely Indonesia, China, the European Union (EU) member states, the United States and Argentina. We examine the trade competitiveness by using the Revealed Trade Advantage (RTA) developed by Vollrath (1991) and utilizing yearly data spanning from 1999 until 2019. We also analyze the duration of comparative advantage using Kaplan-Meier Analysis. The results indicate that Malaysia has higher and more stable trade advantages relative to other main producers of oleochemical products.http://www.sciencedirect.com/science/article/pii/S2405844022031917Trade competitivenessOleochemicalsRevealed trade advantageKaplan-Meier |
| spellingShingle | Norashida Othman Mohd Subri Tahir Leylawati Joremi On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry Heliyon Trade competitiveness Oleochemicals Revealed trade advantage Kaplan-Meier |
| title | On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry |
| title_full | On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry |
| title_fullStr | On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry |
| title_full_unstemmed | On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry |
| title_short | On the duration of trade competitiveness: the case of the Malaysian palm-based oleochemical industry |
| title_sort | on the duration of trade competitiveness the case of the malaysian palm based oleochemical industry |
| topic | Trade competitiveness Oleochemicals Revealed trade advantage Kaplan-Meier |
| url | http://www.sciencedirect.com/science/article/pii/S2405844022031917 |
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