Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia

Rice is ranked the third most important crop in Malaysia after rubber and palm oil in terms of production. Unlike the industrial crops, although its contribution to Malaysia’s economy is minimal, it plays a pivotal role in the country’s food security as rice is consumed by almost everyone in Malaysi...

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Main Authors: Shitan, Mahendran, Ng, Yung Lerd, Karmokar, Provash Kumar
Format: Conference or Workshop Item
Language:English
Published: AIP Publishing LLC 2014
Online Access:http://psasir.upm.edu.my/id/eprint/57436/
http://psasir.upm.edu.my/id/eprint/57436/1/57436.pdf
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author Shitan, Mahendran
Ng, Yung Lerd
Karmokar, Provash Kumar
author_facet Shitan, Mahendran
Ng, Yung Lerd
Karmokar, Provash Kumar
author_sort Shitan, Mahendran
building UPM Institutional Repository
collection Online Access
description Rice is ranked the third most important crop in Malaysia after rubber and palm oil in terms of production. Unlike the industrial crops, although its contribution to Malaysia’s economy is minimal, it plays a pivotal role in the country’s food security as rice is consumed by almost everyone in Malaysia. Rice production is influenced by factors such as geographical location, temperature, rainfall, soil fertility, farming practices, etc. and hence the productivity of rice may differ in different state. In this study, our particular interest is to investigate the interrelationship between the rice production of Perlis and Johor. Data collected from Department of Agriculture, Government of Malaysia are tested for unit roots by Augmented Dickey-Fuller (ADF) unit root test while Engle-Granger (EG) procedure is used in the cointegration analysis. Our study shows that cointegrating relationship exists among the rice production in both states. The speed of adjustment coefficient of the error correction model (ECM) of Perlis is 0.611 indicating that approximately 61.1% of any deviation from the long-run path is corrected within a year by the production of rice in Johor.
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institution Universiti Putra Malaysia
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language English
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publishDate 2014
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spelling upm-574362017-09-27T10:52:21Z http://psasir.upm.edu.my/id/eprint/57436/ Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia Shitan, Mahendran Ng, Yung Lerd Karmokar, Provash Kumar Rice is ranked the third most important crop in Malaysia after rubber and palm oil in terms of production. Unlike the industrial crops, although its contribution to Malaysia’s economy is minimal, it plays a pivotal role in the country’s food security as rice is consumed by almost everyone in Malaysia. Rice production is influenced by factors such as geographical location, temperature, rainfall, soil fertility, farming practices, etc. and hence the productivity of rice may differ in different state. In this study, our particular interest is to investigate the interrelationship between the rice production of Perlis and Johor. Data collected from Department of Agriculture, Government of Malaysia are tested for unit roots by Augmented Dickey-Fuller (ADF) unit root test while Engle-Granger (EG) procedure is used in the cointegration analysis. Our study shows that cointegrating relationship exists among the rice production in both states. The speed of adjustment coefficient of the error correction model (ECM) of Perlis is 0.611 indicating that approximately 61.1% of any deviation from the long-run path is corrected within a year by the production of rice in Johor. AIP Publishing LLC 2014 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/57436/1/57436.pdf Shitan, Mahendran and Ng, Yung Lerd and Karmokar, Provash Kumar (2014) Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia. In: 2nd ISM International Statistical Conference 2014 (ISM-II), 12-14 Aug. 2014, MS Garden Hotel, Kuantan, Pahang. (pp. 206-211). 10.1063/1.4907446
spellingShingle Shitan, Mahendran
Ng, Yung Lerd
Karmokar, Provash Kumar
Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title_full Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title_fullStr Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title_full_unstemmed Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title_short Cointegration analysis for rice production in the states of Perlis and Johor, Malaysia
title_sort cointegration analysis for rice production in the states of perlis and johor, malaysia
url http://psasir.upm.edu.my/id/eprint/57436/
http://psasir.upm.edu.my/id/eprint/57436/
http://psasir.upm.edu.my/id/eprint/57436/1/57436.pdf