The impact of petroleum prices on vegetable oils prices: evidence from co-integration tests
The prices of petroleum and vegetable oils appear to be moving in tandem, a trend which was not observed before. This study seeks to investigate the long-term relationship between the prices of crude oil and selected vegetable oils. To that end, the bivariate co-integration approach using the Engle-...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Malaysian Palm Oil Board
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/35181/1/The%20impact%20of%20petroleum%20prices%20on%20vegetable%20oils%20prices%20evidence%20from%20co-integration%20tests.pdf |
| Summary: | The prices of petroleum and vegetable oils appear to be moving in tandem, a trend which was not observed before. This study seeks to investigate the long-term relationship between the prices of crude oil and selected vegetable oils. To that end, the bivariate co-integration approach using the Engle-Granger two-stage estimation procedure was applied. The study utilized monthly data over the period of January 1983 through March 2008. The results provide strong evidence of a long-run relationship between the two product prices. |
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