Linking exchange rates, market failures and agricultural land demand

Linking exchange rates, market failures and agricultural land demand

The financial crisis of 1997/98 has provided the so-called "Sun set" agricultural sector a rejuvenated role as a growth impetus. This leads to concerns as to whether agricultural augmentation would pose significant repercussions on the pattern of naruml resource use, especially land factor...

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Main Author: Jamal Othman
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2000
Online Access:http://journalarticle.ukm.my/7790/
http://journalarticle.ukm.my/7790/
http://journalarticle.ukm.my/7790/1/2373-4754-1-SM.pdf
id ukm-7790
recordtype eprints
spelling ukm-77902016-12-14T06:45:12Z http://journalarticle.ukm.my/7790/ Linking exchange rates, market failures and agricultural land demand Jamal Othman, The financial crisis of 1997/98 has provided the so-called "Sun set" agricultural sector a rejuvenated role as a growth impetus. This leads to concerns as to whether agricultural augmentation would pose significant repercussions on the pattern of naruml resource use, especially land factor. This paper explores whether sustained depreciation of The Malaysian Ringgit will pose significant impacts on agricultural land demand in the country, with special focus on the oil palm sub-sector. A comparative static, single commodity model with explicit land factor is employed. Analysis shows that a prolonged Ringgit depreciation of 40 percent ceteris paribus will have substantial impacts on land demand (about 10 percent for the oil palm sub-sector). In reality, expansion of oil palm land-use could be greater as other crops, especially rubber is steadily being converted to oil palm due to relative commodity price changes and rising production cost. Penerbit Universiti Kebangsaan Malaysia 2000 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7790/1/2373-4754-1-SM.pdf Jamal Othman, (2000) Linking exchange rates, market failures and agricultural land demand. Jurnal Ekonomi Malaysia, 34 . pp. 21-37. ISSN 0127-1962 http://www.ukm.my/penerbit/jem.htm
repository_type Digital Repository
institution_category Local University
institution Universiti Kebangasaan Malaysia
building UKM Institutional Repository
collection Online Access
language English
description The financial crisis of 1997/98 has provided the so-called "Sun set" agricultural sector a rejuvenated role as a growth impetus. This leads to concerns as to whether agricultural augmentation would pose significant repercussions on the pattern of naruml resource use, especially land factor. This paper explores whether sustained depreciation of The Malaysian Ringgit will pose significant impacts on agricultural land demand in the country, with special focus on the oil palm sub-sector. A comparative static, single commodity model with explicit land factor is employed. Analysis shows that a prolonged Ringgit depreciation of 40 percent ceteris paribus will have substantial impacts on land demand (about 10 percent for the oil palm sub-sector). In reality, expansion of oil palm land-use could be greater as other crops, especially rubber is steadily being converted to oil palm due to relative commodity price changes and rising production cost.
format Article
author Jamal Othman,
spellingShingle Jamal Othman,
Linking exchange rates, market failures and agricultural land demand
author_facet Jamal Othman,
author_sort Jamal Othman,
title Linking exchange rates, market failures and agricultural land demand
title_short Linking exchange rates, market failures and agricultural land demand
title_full Linking exchange rates, market failures and agricultural land demand
title_fullStr Linking exchange rates, market failures and agricultural land demand
title_full_unstemmed Linking exchange rates, market failures and agricultural land demand
title_sort linking exchange rates, market failures and agricultural land demand
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2000
url http://journalarticle.ukm.my/7790/
http://journalarticle.ukm.my/7790/
http://journalarticle.ukm.my/7790/1/2373-4754-1-SM.pdf
first_indexed 2023-09-18T19:50:37Z
last_indexed 2023-09-18T19:50:37Z
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