Abstract
Prices for major food commodities such as grains and vegetable oils have risen sharply in recent years which have triggered the interest of researchers to investigate the factors of price movement. Understanding agricultural commodity price relationships can help both government and farmers to raise the awareness regarding the price volatility in agricultural market, production costs and other potential risks in the future market. This paper examines the relationships between the agricultural commodities price and the potential price determinants such as exchange rate, temperature, rainfall and covid 19 cases in Malaysia. The investigation is examined by using Granger Causality test and Johansen co-integration test. The estimated results provide evidence a unidirectional causal relationship running from the covid-19 cases to chicken price. Furthermore, there is also empirical evidence of cointegrating vectors exists between temperature and chicken. Overall, the findings have significant implications for predicting the future price of agricultural commodities in Malaysia.
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Acknowledgements
The authors would like to acknowledge the Ministry of Education Malaysia FRGS Grant with reference code FRGS/1/2018/ICT02/UNIM/02/1.
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San, W.W., ZhiYuan, C., Leong, T.W. (2023). An Investigation of the Relationship Between Agricultural Price and Its Determinants in Malaysia. In: Kang, DK., Alfred, R., Ismail, Z.I.B.A., Baharum, A., Thiruchelvam, V. (eds) Proceedings of the 9th International Conference on Computational Science and Technology. ICCST 2022. Lecture Notes in Electrical Engineering, vol 983. Springer, Singapore. https://doi.org/10.1007/978-981-19-8406-8_38
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