Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee

<p>The World oil prices shocks is believed become the main important role to movements marketing margins of agricultural commodities, include coffee. We aim to investigate the impact of world oil prices shocks on coffee marketing margins for Indonesia. We decompose world oil prices into positi...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Kamaruddin Kamaruddin, Yusri Hazmi, Raja Masbar, Sofyan Syahnur, M. Shabri Abd. Majid
Formato:	article
Lenguaje:	EN
Publicado:	EconJournals 2021
Materias:	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
Acceso en línea:	https://doaj.org/article/a40d317a347b4e5e919cc05fef53a1ef
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:a40d317a347b4e5e919cc05fef53a1ef
record_format	dspace
spelling	oai:doaj.org-article:a40d317a347b4e5e919cc05fef53a1ef2021-11-12T07:27:31ZAsymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee2146-4553https://doaj.org/article/a40d317a347b4e5e919cc05fef53a1ef2021-11-01T00:00:00Zhttps://econjournals.com/index.php/ijeep/article/view/11857https://doaj.org/toc/2146-4553<p>The World oil prices shocks is believed become the main important role to movements marketing margins of agricultural commodities, include coffee. We aim to investigate the impact of world oil prices shocks on coffee marketing margins for Indonesia. We decompose world oil prices into positive and negative shocks to investigate the asymmetric impacts on marketing margins. For this aims, we adopt a NARDL model to capture the asymmetric impacts both in long and short run. We found that a decrease in oil price has a positive and significant impact on marketing margins, while a decrease in oil price has a significant negative impact. An increase in world oil prices lead to reduce marketing margins. Similarly, a decrease in world oil prices, also impact on the reduction of marketing margins. We therefore conclude that impacts of world oil prices shocks on marketing margins not only asymmetric in magnitude but also in direction. Particularly, the result of the NARDL estimation reveal that negative shock in oil prices has more pronounced impact than positive shocks on the reduction of marketing margin. This result implies that Indonesian coffee producers more benefit when the world oil price decreases compare than increases.</p><p><strong>Keywords: </strong>Oil prices, marketing margin, coffee producers and NARDL model</p><p><strong>JEL </strong><strong>Classifications</strong><strong>:</strong><em> </em>C32, F13, F43, G13.</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11857">https://doi.org/10.32479/ijeep.11857</a></p>Kamaruddin KamaruddinYusri HazmiRaja MasbarSofyan SyahnurM. Shabri Abd. MajidEconJournalsarticleEnvironmental sciencesGE1-350Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENInternational Journal of Energy Economics and Policy, Vol 11, Iss 6, Pp 212-220 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5
spellingShingle	Environmental sciences GE1-350 Energy industries. Energy policy. Fuel trade HD9502-9502.5 Kamaruddin Kamaruddin Yusri Hazmi Raja Masbar Sofyan Syahnur M. Shabri Abd. Majid Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
description	<p>The World oil prices shocks is believed become the main important role to movements marketing margins of agricultural commodities, include coffee. We aim to investigate the impact of world oil prices shocks on coffee marketing margins for Indonesia. We decompose world oil prices into positive and negative shocks to investigate the asymmetric impacts on marketing margins. For this aims, we adopt a NARDL model to capture the asymmetric impacts both in long and short run. We found that a decrease in oil price has a positive and significant impact on marketing margins, while a decrease in oil price has a significant negative impact. An increase in world oil prices lead to reduce marketing margins. Similarly, a decrease in world oil prices, also impact on the reduction of marketing margins. We therefore conclude that impacts of world oil prices shocks on marketing margins not only asymmetric in magnitude but also in direction. Particularly, the result of the NARDL estimation reveal that negative shock in oil prices has more pronounced impact than positive shocks on the reduction of marketing margin. This result implies that Indonesian coffee producers more benefit when the world oil price decreases compare than increases.</p><p><strong>Keywords: </strong>Oil prices, marketing margin, coffee producers and NARDL model</p><p><strong>JEL </strong><strong>Classifications</strong><strong>:</strong><em> </em>C32, F13, F43, G13.</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11857">https://doi.org/10.32479/ijeep.11857</a></p>
format	article
author	Kamaruddin Kamaruddin Yusri Hazmi Raja Masbar Sofyan Syahnur M. Shabri Abd. Majid
author_facet	Kamaruddin Kamaruddin Yusri Hazmi Raja Masbar Sofyan Syahnur M. Shabri Abd. Majid
author_sort	Kamaruddin Kamaruddin
title	Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
title_short	Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
title_full	Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
title_fullStr	Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
title_full_unstemmed	Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee
title_sort	asymmetric impact of world oil prices on marketing margins: application of nardl model for the indonesian coffee
publisher	EconJournals
publishDate	2021
url	https://doaj.org/article/a40d317a347b4e5e919cc05fef53a1ef
work_keys_str_mv	AT kamaruddinkamaruddin asymmetricimpactofworldoilpricesonmarketingmarginsapplicationofnardlmodelfortheindonesiancoffee AT yusrihazmi asymmetricimpactofworldoilpricesonmarketingmarginsapplicationofnardlmodelfortheindonesiancoffee AT rajamasbar asymmetricimpactofworldoilpricesonmarketingmarginsapplicationofnardlmodelfortheindonesiancoffee AT sofyansyahnur asymmetricimpactofworldoilpricesonmarketingmarginsapplicationofnardlmodelfortheindonesiancoffee AT mshabriabdmajid asymmetricimpactofworldoilpricesonmarketingmarginsapplicationofnardlmodelfortheindonesiancoffee
_version_	1718431127047241728

Asymmetric Impact of World Oil Prices on Marketing Margins: Application of NARDL Model for the Indonesian Coffee

Ejemplares similares