The implication price of substitute product towards price of crude palm oil : evidence from Malaysia / Siti Amira Sahira Roslan

There are a lot commodity product in this world such as corn oil, olive oil, soybean oil, sunflower oil, crude palm oil and etc. In this studies, however only focus on soybean oil, coconut oil and sunflower oil that act as an independent variable while crude palm oil act as a dependent variable. As we know, the price of this commodity very fluctuate. Rapid development of the country make a huge demand and supply around the world. This paper is to find out the relationship between soybean oil, coconut oil and sunflower oil towards crude palm oil. I f there has any changes in price of substitute product what going to be happen on price of crude palm oil. Next, this paper also to figure out is there any granger causality between the variable? Data were collected by monthly basis from January 2004 to December 2014. In order to complete the task, Multiple Linear Regression and Granger Causality Test been conducted. The results found there are significant relationship between these variables but not all variables have granger causal effect relationship.