External and Internal Shocks and the Movement of Palm Oil Price: SVAR Evidence from Malaysia

Movements in palm oil price give important signals to various stakeholders of the industry Malaysia. Thus, understanding external and internal factors that may affect is vital players for sustainability their activities. This study investigates relative importance shocks on movement Employing a structural vector autoregressive (SVAR) model quarterly data from 1990 2019, findings reveal are more dominant affecting price. Shocks crude price, prices substitution goods (soybeans oil, rapeseed sunflower oil), world foreign income significantly short medium run. The results also indicate shock soybean has profound effect than or prices, respectively. Likewise, incomes India as well Netherlands create greater impacts other trading partners, shown industry.