Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products

Malaysia, although being a significant player in the international rubber market, faces difficulties in properly capitalising on rubber exports to strengthen its national accounts. This can be attributed to the challenges posed by limited land availability and uneven productivity distribution. Hence...

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Published in:Management and Accounting Review
Main Author: Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
Format: Article
Language:English
Published: Universiti Teknologi Mara 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85214215254&doi=10.24191%2fMAR.V23i02-12&partnerID=40&md5=95b2eb8779d59acb10581b3b9b262315
id 2-s2.0-85214215254
spelling 2-s2.0-85214215254
Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
2024
Management and Accounting Review
23
2
10.24191/MAR.V23i02-12
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85214215254&doi=10.24191%2fMAR.V23i02-12&partnerID=40&md5=95b2eb8779d59acb10581b3b9b262315
Malaysia, although being a significant player in the international rubber market, faces difficulties in properly capitalising on rubber exports to strengthen its national accounts. This can be attributed to the challenges posed by limited land availability and uneven productivity distribution. Hence, the aims of this study were: (i) to evaluate Malaysia's comparative advantage in the production of natural rubber downstream products compared with Thailand, the primary natural rubber producer and (ii) to examine the influence of trade openness (TO), foreign direct investment (FDI), gross domestic product (GDP), and inflation (INF) on Malaysia's export competitiveness in the natural rubber industry. This study utilised secondary data from the United Nations Commodity Trade Statistics Database (COMTRADE) and World Bank data spanning 32 years, from 1990 to 2021. The study used regression analysis and the autoregressive distributed lag (ARDL) technique to uncover the index of relative export advantage (RXA). The RXA index revealed that Thailand was more competitive in natural rubber exports than Malaysia. Furthermore, the ARDL technique findings indicated that trade openness (TO) and inflation (INF) had a considerable statistical impact on Malaysia's export competitiveness in the natural rubber industry. Meanwhile, foreign direct investment (FDI) significantly affected export competitiveness in the long term. © 2024, Universiti Teknologi Mara. All rights reserved.
Universiti Teknologi Mara
26007975
English
Article
All Open Access; Gold Open Access
author Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
spellingShingle Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
author_facet Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
author_sort Hanani F.; Othman N.; Wahab S.N.; Oktarina S.D.
title Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
title_short Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
title_full Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
title_fullStr Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
title_full_unstemmed Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
title_sort Demand Evaluating the Nexus: Factors Propelling Malaysia’s Export Competitiveness in Natural Rubber Downstream Products
publishDate 2024
container_title Management and Accounting Review
container_volume 23
container_issue 2
doi_str_mv 10.24191/MAR.V23i02-12
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85214215254&doi=10.24191%2fMAR.V23i02-12&partnerID=40&md5=95b2eb8779d59acb10581b3b9b262315
description Malaysia, although being a significant player in the international rubber market, faces difficulties in properly capitalising on rubber exports to strengthen its national accounts. This can be attributed to the challenges posed by limited land availability and uneven productivity distribution. Hence, the aims of this study were: (i) to evaluate Malaysia's comparative advantage in the production of natural rubber downstream products compared with Thailand, the primary natural rubber producer and (ii) to examine the influence of trade openness (TO), foreign direct investment (FDI), gross domestic product (GDP), and inflation (INF) on Malaysia's export competitiveness in the natural rubber industry. This study utilised secondary data from the United Nations Commodity Trade Statistics Database (COMTRADE) and World Bank data spanning 32 years, from 1990 to 2021. The study used regression analysis and the autoregressive distributed lag (ARDL) technique to uncover the index of relative export advantage (RXA). The RXA index revealed that Thailand was more competitive in natural rubber exports than Malaysia. Furthermore, the ARDL technique findings indicated that trade openness (TO) and inflation (INF) had a considerable statistical impact on Malaysia's export competitiveness in the natural rubber industry. Meanwhile, foreign direct investment (FDI) significantly affected export competitiveness in the long term. © 2024, Universiti Teknologi Mara. All rights reserved.
publisher Universiti Teknologi Mara
issn 26007975
language English
format Article
accesstype All Open Access; Gold Open Access
record_format scopus
collection Scopus
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