An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail

Rubber industry is one of the main contributors to Malaysia’s economic growth. But, lately Malaysia facing a declining in area and production of rubber. The study determines the economic analysis of rubber production in Malaysia using annual data over the period of 1987-2016. The importance of this...

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Main Author: Ismail, Muhammad Burhanuddin
Format: Student Project
Language:English
Published: Faculty of Plantation and Agrotechnology 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/22691/
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author Ismail, Muhammad Burhanuddin
author_facet Ismail, Muhammad Burhanuddin
author_sort Ismail, Muhammad Burhanuddin
building UiTM Institutional Repository
collection Online Access
description Rubber industry is one of the main contributors to Malaysia’s economic growth. But, lately Malaysia facing a declining in area and production of rubber. The study determines the economic analysis of rubber production in Malaysia using annual data over the period of 1987-2016. The importance of this study comes from the necessity to determine important factors influencing of rubber production in Malaysia. An Autoregressive Distributed Lag (ARDL) modelling is employed to investigate the impact of area planted, rubber export, and synthetic rubber price on rubber production. The findings of the study illustrate that the ADF unit root tests indicate that the independent variable at first difference are stationary. The results of estimated long run coefficients using the ARDL Approach for the Rubber Export and Area planted are positively significant. The cumulative sum of recursive residuals (CUSUM) were used to test for structural stability of the model. The ARDL bounds tests suggest that the independent variable series are co-integrated. The ECM also reveals that the independent variable have significant causative implications for rubber production and able to readjust 56.12% to long-run equilibrium.
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spelling uitm-226912020-07-29T08:17:24Z https://ir.uitm.edu.my/id/eprint/22691/ An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail Ismail, Muhammad Burhanuddin Economics Rubber industry and trade Rubber industry is one of the main contributors to Malaysia’s economic growth. But, lately Malaysia facing a declining in area and production of rubber. The study determines the economic analysis of rubber production in Malaysia using annual data over the period of 1987-2016. The importance of this study comes from the necessity to determine important factors influencing of rubber production in Malaysia. An Autoregressive Distributed Lag (ARDL) modelling is employed to investigate the impact of area planted, rubber export, and synthetic rubber price on rubber production. The findings of the study illustrate that the ADF unit root tests indicate that the independent variable at first difference are stationary. The results of estimated long run coefficients using the ARDL Approach for the Rubber Export and Area planted are positively significant. The cumulative sum of recursive residuals (CUSUM) were used to test for structural stability of the model. The ARDL bounds tests suggest that the independent variable series are co-integrated. The ECM also reveals that the independent variable have significant causative implications for rubber production and able to readjust 56.12% to long-run equilibrium. Faculty of Plantation and Agrotechnology 2018 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/22691/1/22691.pdf Ismail, Muhammad Burhanuddin (2018) An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail. (2018) [Student Project] <http://terminalib.uitm.edu.my/22691.pdf> (Unpublished)
spellingShingle Economics
Rubber industry and trade
Ismail, Muhammad Burhanuddin
An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title_full An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title_fullStr An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title_full_unstemmed An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title_short An economic analysis of rubber production in Malaysia using ARDL model / Muhammad Burhanuddin Ismail
title_sort economic analysis of rubber production in malaysia using ardl model / muhammad burhanuddin ismail
topic Economics
Rubber industry and trade
url https://ir.uitm.edu.my/id/eprint/22691/