PALM OIL TRADE AND PRODUCTION TOWARD ACHIEVING SUSTAINABLE DEVELOPMENT GOALS: A GLOBAL PANEL REGRESSION ANALYSIS

Abstract

Palm oil is considered the most consumed edible oil in the world. An estimated 75% of overall palm oil production is destined for export with the total export value amounting to USD 28.2 billion in 2016. Currently, more research is needed to understand the associations between palm oil trade and production, and its environmental, social, and economic development aspects in accordance with the UN’s Sustainable Development Goals (SDGs). This research explores the possible associations between the key SDG indicators and palm oil trade and production. Statistical tools are employed in order to analyze the relationships between the key SDG indicators and palm oil trade and production. Random and fixed effects regression models were developed to identify the impacts of key SDG indicators on palm oil trade and production. The results showed that a reduction in the number of undernourished people significantly enhances the growth of palm oil imports, exports and production. An increase in agricultural employment significantly increases palm oil imports, exports, and production. Furthermore, it was found that temperature has a significant negative impact on palm oil trade and production. Recommendations for policy development toward sustainable palm oil trade in moving toward achievement of the SDGs are addressed to ensure a future for the sustainable growth of palm oil trade and production.