IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v70y2024i3id332-2023-agricecon.html
   My bibliography  Save this article

Palm oil trade restrictiveness index and its impact on world palm oil exports

Author

Listed:
  • Hakimah Nur Ahmad Hamidi

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia)

  • Norlin Khalid

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor, Malaysia)

  • Zulkefly Abdul Karim

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor, Malaysia)

Abstract

Despite numerous attempts to remove tariff and non-tariff barriers, the average number of barriers in the agricultural sector, particularly in the palm oil sector, is rising. Non-tariff effects are subjective, which makes them challenging to quantify. A new palm oil trade restrictiveness index that considers each trade barrier imposed on palm oil exports, such as tariff and non-tariff measures, is necessary to facilitate the sector's exports. Hence, this study aims to calculate the trade restrictiveness index (TRI) of palm oil and analyse its impact on Malaysia's and Indonesia's palm oil exports. This study uses a gravity model with Poisson pseudo-maximum likelihood (PPML) estimation to analyse the impact of trade barriers on world palm oil export for a sample of 59 major palm oil importing countries from 2009 to 2019. The study revealed that each importing country imposes different restrictions on Malaysia and Indonesia. The TRI showed a negative and significant relationship influencing palm oil exports in the case of Malaysia, while a positive and significant relationship for Indonesia. The policy implications of this study suggest that policymakers in both Malaysia and Indonesia should take proactive steps to comply with every criterion demanded by the importing country.

Suggested Citation

  • Hakimah Nur Ahmad Hamidi & Norlin Khalid & Zulkefly Abdul Karim, 2024. "Palm oil trade restrictiveness index and its impact on world palm oil exports," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(3), pages 101-111.
    • Handle: RePEc:caa:jnlage:v:70:y:2024:i:3:id:332-2023-agricecon
    DOI: 10.17221/332/2023-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/332/2023-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/332/2023-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/332/2023-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Hoda El-Enbaby & Rana Hendy & Chahir Zaki, 2016. "Do SPS measures matter for margins of trade? Evidence from firm-level data," Applied Economics, Taylor & Francis Journals, vol. 48(21), pages 1949-1964, May.
    3. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    4. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    5. Roman Vakulchuk & Alexander Knobel, 2018. "Impact of non-tariff barriers on trade within the Eurasian Economic Union," Post-Communist Economies, Taylor & Francis Journals, vol. 30(4), pages 459-481, July.
    6. Sushil Mohan & Sangeeta Khorana & Homagni Choudhury, 2013. "Why Developing Countries Have Failed to Increase Their Exports of Agricultural Processed Products," Economic Affairs, Wiley Blackwell, vol. 33(1), pages 48-64, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:caa:jnlage:v:preprint:id:332-2023-agricecon is not listed on IDEAS
    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "On the impact of non-tariff measures on trade performances of the African agri-food sector," Agrekon, Taylor & Francis Journals, vol. 58(4), pages 389-406, October.
    3. Grant, Jason & Arita, Shawn, 2017. "Sanitary and Phyto-Sanitary Measures: Assessment, Measurement, and Impact," Commissioned Papers 259417, International Agricultural Trade Research Consortium.
    4. Olper, Alessandro, 2017. "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.
    5. Mahdi Ghodsi, 2018. "The Impact of Chinese Technical Barriers to Trade on its Manufacturing Imports," FIW Working Paper series 186, FIW.
    6. Yang, Qizhong, 2024. "Heterogeneous impact of non-tariff measures on import margins through global value chains: Firm-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 533-562.
    7. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.
    8. Mahdi Ghodsi, 2024. "Regulatory convergence within technical barriers to trade," The World Economy, Wiley Blackwell, vol. 47(5), pages 1870-1915, May.
    9. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    10. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 5, pages 81-104, World Scientific Publishing Co. Pte. Ltd..
    11. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2019. "The Impact of TBT and SPS Measures on Japanese and Korean Exports to China," Sustainability, MDPI, vol. 11(21), pages 1-23, November.
    12. Ha Thi Thanh Doan & Hongyong Zhang, 2024. "Technical barriers to trade, product quality and trade margins: firm-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(3), pages 785-811, August.
    13. Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia," IDE Discussion Papers 453, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    14. Ghodsi, Mahdi, 2023. "Exploring the ‘non-tariff measures black box’: Whose regulatory NTMs on which products improve the imported quality?," International Economics, Elsevier, vol. 173(C), pages 45-67.
    15. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    16. Ehrich, Malte & Mangelsdorf, Axel, 2016. "The Role of Private Standards for Manufactured Food Exports from Developing Countries," GlobalFood Discussion Papers 243400, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    17. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    18. Shaosheng Jin & Baojie Ma & Yuqing Zheng & Xin Jin & Wenchao Wu, 2024. "Short‐term impact of food safety standards on agri‐product exports: Evidence from Japan's positive list system on Chinese vegetable exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 362-381, February.
    19. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    20. Alessandro NICITA & Jaime DE MELO, 2018. "Non-Tariff Measures: Data and Quantitative Tools of Analysis," Working Papers P218, FERDI.
    21. Marco Fugazza, 2013. "The Economics Behind Non-Tariff Measures: Theoretical Insights And Empirical Evidence," UNCTAD Blue Series Papers 57, United Nations Conference on Trade and Development.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:70:y:2024:i:3:id:332-2023-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.