Authors : Myrle Jean N. Bagaluyos; Rhenalie N. Bello
Volume/Issue : Volume 6 - 2021, Issue 12 - December
Google Scholar : http://bitly.ws/gu88
Scribd : https://bit.ly/3GEo7xk
DOI : https://doi.org/10.5281/zenodo.5879091
This research study was conducted to determine
whether oil palm farmers are responsive to price
variations that occur from time to time due to supply and
demand fluctuations. This study, therefore, analyzed the
oil palm farmers' responsiveness from the period of 2005-
2020. Specifically, it aims to (a) examine the oil palm trends
in production (metric tons) and oil palm pricing in the
Philippines from 2005 to 2020. (b)to identify the short run
or long run relationship between oil palm production and
oil palm pricing, (c)to estimate the supply elasticity of oil
palm. When the Autoregressive Distributive Lag bound
test is performed, it is discovered that there is a
cointegrating connection, and the ARDL is then
reparametrized and included in the Error correction
model. The ARDL approach to cointegration estimation
for the price of oil palm is inelastic in the short run and the
long run. The researcher concludes that oil palm farmers
are not responsive to fluctuations in their prices in the long
and short run. The research study also concluded the
trends of oil palm production and farmgate price of oil
palm.
Keywords : ARDL Model, Cointegration, Demand, Error Correction Model, Oil Palm And Supply Response.