Oil Plam Demand Elasticity Analysis in Thailand

Abstract

This study aims to analyze the elasticity of demand for palm oil in Thailand. Research used quantitative methods to collect secondary data,specifically time series data of information on demand for palm oil in Thailand based on monthly data collection between January 2014 to December 2016. Variables studied included palm oil consumption, palm oil prices, soybean
prices, and Thailand palm oil product volume. Demand elasticity for palm oil in Thailand responded to a change in price of palm oil at a level of -0.52, so that when the growth rate of the price of palm oil is changed by 1%,results in a change in growth rate of palm oil products is 0.28. When the growth rate of palm oil products in Thailand changed by 1%, the growth rate of demand for palm oil in Thailand varied in the same direction by 0.28%. Thailand palm oil demand elasticity in the current year in response to a change in palm oil demand last year was 0.35. When the demand growth rate of palm oil in Thailand last year changed by 1%the current growth rate of demand for palm oil in Thailand is changing in the same direction by 0.35%.