Description
Title: An investigation into the state of the oil palm industry in Malaysia’s value chain
Abstract: The European Union’s import ban on palm oil has grown to be a contentious issue, especially for the nations that produce the oil. Numerous sub-sectors have a significant use for oil palm, and any changes to the production side may have an impact on a number of these sectors as well. By utilizing a value-added multiplier method and network modeling, this study investigates the impact of the oil palm sector on the other sub-sectors in Malaysia. Based on the Malaysian Input-Output 2015 Table, the study focuses on the specific oil palm sub-sector and oils and fats sub-sector in the Malaysian economic structure. Using UCINET and GEPHI software, network visualization and all analyses involving network techniques were created and carried out. The results of the value-added multiplier indicated the significance of the net value between import multiplier and output multiplier in illustrating the true impact of net resources used as an input factor in the oils and fats and oil palm sub-sectors. The high value level of density demonstrates the high economic interconnectedness of the Malaysian oil palm industry. According to the network visualization analysis, the oils and fats sub-sector is very integrated with the other network sectors. The input-output network has a low level of integration for the periphery structure group category of oil palm sub-sector. This is a result of the high value-added demand for oil palm in the manufacturing industry’s oils and fats subsector. Due to Malaysia’s high clustering ratio, the majority of its subsectors are highly interconnected. Thus, maintaining a sufficient oil palm production is essential for the long-term viability of other subsectors.
Keywords: network analysis; input-output model; oil palm sector
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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