earticle

영어

Currently, aging population has been increased dramatically with development in medical technologies and dining experiences. And, incurable diseases can be healed more easily than before with this development. Many scientists strive to find ways regarding how to extend life. In this situation, the bio-industry has been to the fore to get solutions for prolongs human life at the moment of the economic crisis. Many developed countries attempt to kick-start the bio-industry and their attempts are also to promote their economy through the bio-investments. Additionally, energy crisis has emerged as an overriding concern in consequence of the diminishing fossil fuels. Many countries in the world try to find alternative energy sources to replace fossil fuels. Examples of alternative energy sources are clean energies such as solar power, wind power, and bio-energy. In the field of the bio-industry, palm oil is a very beneficial source that can be applied to many purposes: medical applications, new energy sources, and food applications. Official data shows that the bio-industry in the US is superior to the bio-industry in the EU. And, the European countries try to catch up the US which is a leading country over the world in the field of the bio-industry. This paper studies how bio-industry affects macroeconomic factors empirically. In other words, this paper studies recent empirical developments regarding the bio-industry using the Granger-causality test with Indonesia’s palm oil data. This paper finds that GDP has a unidirectional causality and a reciprocal causality with macroeconomic factors. However, GDP has no causality with ‘beginning stock’ of palm oil. ‘Ending stock’ of palm oil has a unidirectional causality and a reciprocal causality with macroeconomic factors. Overall, our empirical test results show that economic growth affects development in the bio-industry. And, the most noteworthy feature of the bio-industry nowadays is that M&A has been spread over the world to acquire the most recent bio-technology economically.