Effect of Agricultural, Manufacturing And Services Sectors Performance In Nigeria, 1980-2011

The effect of non-oil components export on the economic growth in Nigeria continue to be debated and tested inorder for turning around of the nation’s economic outlook for the future good, by strengthen non-oil exportgrowth and success and also promote a non-oil export culture. This paper extends the previous empirical studieson the issue providing some evidence from time series data period over 1980 – 2011. In this study, the dependentvariables were agricultural, manufacturing and services sector whereas the independent variable is the grossdomestic product (GDP). The model was tested using unit root test, ordinary least square (OLS), serialcorrelation LM test and heteroskedasticity test to analyze the significant contribution between the dependent andindependent variables. The result shows that agricultural and services sector of non-oil export componentcontributed significantly to the economic growth (GDP) of Nigeria. Also the result presents that there is nocorrelation and heteroskedasticity problem. Finally this paper draws some policy implications for the furtherstudies to focus on the non-oil export component in Nigeria so has to ensure a turnaround of the nation’seconomic outlook (growth).Keywords: Non-Oil Export, Gross Domestic Product, Agricultural, Manufacturing and Services Sector

Impact of biodiesel blend mandate (810) on the Malaysian Palm Oil Industry

Over the last ten years biofuels production has increased dramatically. One of the main factors is the rise in world oil prices, coupledwith heightened interest in tlle abatetnent ofgreenhouse gas emissions and concerns about energt security. The increment in production has been driven by governmental interventions. In the US, the worldb largestfuel ethanol producer, strongfinancial incentives are guaranteedfor biofuel manufacturers. While, in the European (Jnion, the worldb largest biodiesel producer, biofuel consumption is mostly driven by blending mandates in both France and Germany. In the case of Malaysia, biodiesel started to be exported since 2006. The policy mandate of B5 blend of palm oil based biodiesel into diesel in all government vehicles was implemented in February 2009. h is expected that the blend of 85 will be increased to B l0 in future. This paper seeles to examine the impact of B l0 on the Malaysian palm oil market. A structural econometric model consisting of eight structural equations and four identities was proposed in this study. The model has been estimated by two stdge least squares method using annual data for the period 1976- 201 l. The specification ofthe structural model is based on a series ofassumptions about general economic conditions, agricultural policies and technological change. The study indicates that counterfactual simulation ofan increasefrom 85 to B l0 predicts a positive increase (23.31 per cent) in palm oil domestic consumption, 109.3 per cent decrease in stock, 0.07 per cent increase in domestic price of palm oil and a marginal (0.05 percent) increase in production. An increase in domestic demand would make Malaysia more competitive regionally and globally with benefits accruing to all Malaysians

Impact of Biodiesel Demand on the Malaysian Palm Oil Industry: A Simultaneous Equations Approach

The European Union (EU) Renewable Energy Directive set a target of 20 % share of energy from the renewable sources and 10% share of renewable energy specifically in the transport sector. This has resulted in some countries looking for bio-based alternative energies which lead to the increase in demand for bio-based feedstocks such as palm and rapeseed oil (for biodiesel) and sugar cane and corn (for ethanol). One of the new elements in the palm oil market is the growing demand for this commodity as a feedstock to biodiesel production. This will also put Malaysia in a better light on the international front for taking the effort to reduce carbon emissions. In line with this, the palm oil sector in Malaysia will be able to match the New Economic Model’s (NEM) major goals of high income, sustainability and inclusiveness. This new development is affecting the dynamics of the market, in particular, the supply and demand sectors of this commodity. This paper seeks to examine the impact of biodiesel demand on the Malaysian palm oil industry. This paper proposes a structural econometric model consisting of nine structural equations and four identities. The model has been estimated by the two stage least squares method using annual data for the period 1976–2010.

Impact of biodiesel demand on the Malaysian palm oil industry: A simultaneous equations approach

The European Union (EU) Renewable Energy Directive set a target of 20 % share of energy from the renewable sources and 10% share of renewable energy specifically in the transport sector.This has resulted in some countries looking for bio-based alternative energies which lead to the increase in demand for bio-based feedstocks such as palm and rapeseed oil (for biodiesel) and sugar cane and corn (for ethanol).One of the new elements in the palm oil market is the growing demand for this commodity as a feedstock to biodiesel production.This will also put Malaysia in a better light on the international front for taking the effort to reduce carbon emissions.In line with this, the palm oil sector in Malaysia will be able to match the New Economic Model’s (NEM) major goals of high income, sustainability and inclusiveness.This new development is affecting the dynamics of the market, in particular, the supply and demand sectors of this commodity.This paper seeks to examine the impact of biodiesel demand on the Malaysian palm oil industry.This paper proposes a structural econometric model consisting of nine structural equations and four identities.The model has been estimated by the two stage least squares method using annual data for the period 1976–2010.The specification of the structural model is based on a series of assumptions about general economic conditions, agricultural policies and technological change.The study indicates that counterfactual simulation of a sustained 30% increase in biodiesel demand predicts a positive increase (2.48%) in palm oil exports for non-biodiesel, 13% increase in the domestic price of palm oil and a marginal increase in production.An increase in export demand would make Malaysia more competitive regionally and globally with benefits accruing to all Malaysians.Apart from this, the biodiesel demand income is also sustainable and will position the nation on the right path towards a high income country by 202