# Sustainability On Rubber Production In Malaysia Commerce Essay

The finding of sustainability on gum elastic production in Malaysia was analysed utilizing the Ordinary Least Square method. However, before we could prove all the secondary informations by utilizing the Double Log Regression, we foremost need to place the coefficient utilizing the Unit of Root Test, which chiefly tests the features of informations utilizing the Augmented Dickey-Fuller ( ADF ) Test. The analysis consists of series of informations covering the twelvemonth of 1961 to 2006. The job statement of this paper is determined in order to react to the growing of gum elastic production in Malaysia, whereby there were a few factors called production factors that need to be considered including the countries of which the gum elastics were planted, labors hired, and the outputs gained from the gum elastic production. From the analysis of production factors, it can be identified whether the Malayan NR production can be sustained compared to other states such as Thailand and Indonesia. In conformity to that, the aim of this paper is to find the relationship between each variable in order to demo whether Malaya can accomplish its mark to prolong in NR production or non by comparing its production factors to another state, Thailand.

Rubber can be classified into two chief classs ; natural gum elastic ( NR ) and man-made gum elastic ( SR ) . The NR is obtained from latex, which is the milklike white fluid and easy to happen in many workss. However, most of the workss are coming from the Brazilian rubber-tree ( HeveaBrasiliensis ) . In Malaysia, HeveaBrasiliensis covers 2 million hectares countries in Peninsular Malaysia. The chief provinces that are known as the chief manufacturers of gum elastic latex are Johor, Kedah, Perlis and Negeri Sembilan. Other parts include Perak, Sabah, and Sarawak. Even though big countries have been covered but SR is the chief menace to NR, which is due to the monetary value of SR still competitory compared to NR. Meaning, if possible occurs fall in monetary value of fuel in the universe market will do the SR cheaper than NR. Actually, SR is formed as of unsaturated hydrocarbons.

Harmonizing to MIDA ( 2008 ) , Malaysia is graded 3rd behind Indonesia and Thailand in bring forthing NR in the universe. It produces about 40 per centum of NR yearly. Furthermore, there are 500 makers in the Malayan industry bring forthing related rubber-based merchandises such as baseball mitts, tyres, and places. For case, in 2005, Malaysia was known as the largest manufacturer of the gum elastic baseball mitts in the universe. Meaning, the part of gum elastic industry is really of import to the state, particularly to the little holders of gum elastic workss.

## 2. Literature Reappraisal

Harmonizing to Kittipol ( 2008 ) , Malaysia was declared as the 3rd largest manufacturer of NR after Thailand and Indonesia in 2007. Malaysia produced 1.22 million dozenss of gum elastic production compared to Thailand, which was the first largest manufacturer over the universe with the volume of 3 million dozenss followed by Indonesia with 2.79 million dozenss of gum elastic production. Thailand has maintained its place as the largest gum elastic manufacturer in the universe due to its consciousness in prolonging and keeping their place as the chief NR manufacturer in the universe. Pathanasriskul ( 2005 ) elaborated on Rubber Research Institute of Thailand ( RRIT ) where in the study ; Thailand has taken into consideration two ways in order to prolong its place, i.e. up-stream industries and down-stream industries of gum elastic production. For illustration, in the up-stream industries of gum elastic production, the industry does tapping developing to their workers and an activity such as husbandman group meetings. For down-stream industries, their aim is to increase the domestic ingestion of NR within five old ages from the entire figure of gum elastic production worldwide.

The Economic Planning Unit ( 2009 ) stated that because of the awaited output betterments from 900 kgs to 1500 kgs per hectare in 2003 to 2005, the gum elastic productions were forecasted to increase by 3.8 per cent per annum in the undermentioned old ages. In this instance, in order to guarantee the sustainable of NR for the long-run period, attempt would be continued in bring forthing more the downstream furniture production. Besides that, the EPU asserted that the country of gum elastic plantation was expected to worsen because of the usage of land for oil thenar plantation and others. Harmonizing to Carrere ( 2006 ) , in the instance of Cambodia, both gum elastic and oil palm demand larger countries of plantations. Meaning, the decreasing in the country was non a good mentality to prolong in the NR production.

Harmonizing to Wahid et. Al. ( 2008 ) , in their diary entitled Review ofMalaysian Agricultural Policies with Regards to Sustainability ; there was a important consequence of part of little holders in the agribusiness sector. But, they were besides the bulk group which is suffered due to uneconomic size of land and besides being the lowest income group. Furthermore, because of that, the country of agribusiness land diminutions. In contrast, in Menglun Township, Southwest China, the country of gum elastic plantation was quickly expanded between 1988 and 2003 ( Liu et. al. , 2006 ) . The alteration shows that increasing in land came from forested countries about covered 42 per cent ( 4150 hour angle ) and fallow Fieldss covered 23 per cent ( 3001 hour angle ) .

Harmonizing to Kaur ( 2008 ) , labour is really of import factors that can give consequence in the NR production. In his diary, he said that the handiness and ability to command, labor would be the of import portion of production. It is besides of import in the societal dealingss of transmutation. This statement is besides supported by Ke et. Al. ( 2006 ) which stated that labour intensive productiveness is softly closer to NR production. This is due to their ability and accomplishment can be maintained for a long clip period. Harmonizing to Mesike et. Al. ( 2009 ) , smallholder had a duty in increasing and prolonging the gum elastic production. This can be explained by their occupation features, which provide a extremely labour intensifier, although there was a low degree of productions runing.

## 3. Datas and Methodology

The finding of gum elastic production in Malaysia was analysed by utilizing the Ordinary Least Square ( OLS ) method. However, before we could prove all informations by utilizing Log-Log arrested development, we must foremost place its coefficient utilizing the Unit of Root trial, which is a trial to find their features by utilizing ADF trials. The analysis was presented by the clip series of informations covering the twelvemonth of 1961 until 2006.

## 3.1 Analysis of Datas

Arrested development Analysis concerns with a survey of relationship between a dependent variableand other or more independent variables.

## Y= ?a‚ˆ + ?a‚?X1 + ?a‚‚ X2+ ?a‚? X3 +µ ( 3.0 )

Beginning: Gujarati and Porter ( 2010 ) .

The theoretical account of Regression sometimes shows the false consequences or doubtfulvalue, which is affecting the series of informations. This means, at the status the consequence looks better but opposite of farther probe at that place have non good consequences.

Ordinary Least Square ( OLS ) is used most often in the arrested development analysis. It states that b1 and b2 should be chosen in such a manner of Residual Sum of Square ( RSS ) and the µ is every bit little as possible.

1. Log-log Arrested development

Single: lnY= ?a‚ˆ + ?a‚? lnX1 +µ ( 3.1 )

Beginning: Gujarati and Porter ( 2010 ) .

This indicates that the alterations in dependent variables associated with the alterations in an independent variable.

Where in this paper:

lnY = lnProduction = Production of gum elastic

lnX1=lnArea = Total country of planted hectare age

lnX1= lnLabour = Total figure of workers employed during the last wage period

lnX1= lnYield = Yield per hectare

Multiple: lnY= ?a‚ˆ + ?a‚? lnX1 + ?a‚‚ lnX2 + ?a‚? lnX3 +µ ( 3.2 )

Beginning: Gujarati and Porter ( 2010 ) .

This indicates that the alterations in dependent variables associated with the alterations in one or more independent variables.

Where in this paper ;

lnY = lnProduction = Production of gum elastic

lnX1=lnArea = Total country of deep-rooted hectareage

lnX2= lnLabour = Total figure of workers employed during the last wage period

lnX3= lnYield = Yield per hectare

Harmonizing to Heij et. al. , ( 2004 ) , the OLS can be computed as the undermentioned stairss:

Measure 1: Variables choosed.

X1, X3, X4… … … ..Xk where there was changeless in Ten which is normally take the value one.

Measure 2: Datas aggregation

The related value of X and the n observation of Y are collected. Than the information of Y would be stored in an n ten 1 vector while for informations in an explanatory variable would be stored in the n x K matrix X.

Measure 3: Estimated calculation

It was computed by utilizing arrested development bundle by B = ( X’X ) -1x ‘Y ( 3.3 )

Meanss, rank kshould be had by matrix X. The Ten is an n ten kmatrix requires n & A ; gt ; k is the figure of parametric quantities, wherenismore than or equal to the figure of observations. K is well smaller than N, which are about required by homo in a existent state of affairs.

## Augmented Dickey-Fuller ( ADF )

Harmonizing to Gujarati and Porter ( 2010 ) , to prove the stationary, the Unit Root Test should be considered. The trial could be obtained as follows:

1. Arrested development is estimated as follows:

## ?Yt = A1 + A2t + A3Yt-1 + µt ( 3.4 )

Leting Yt = represent the stochastic clip series ( Rubber Production )

Where:

?Yt = First difference of Yt

T = Trend variable

Yt-1 = One period lagged value of the variable Yttrium

µt = White noise

Beginning: Gujarati and Porter ( 2010 ) .

2. Unit Root Hypothesis:

A3 is the void hypothesis, where the Yt-1 coefficient is zero or in other word there is a nonstationary of clip series.

H0: The information is stationary in clip series

H1: The information is no stationary in clip series

3. Dickey-Fuller ( DF ) trial:

To prove the a3 which is utilizing the estimated value A3, is zero.If the value of estimated value A3is more than the critical DF values, unit root hypothesis will be rejected. In that instance, we conclude that there is a stationary in the clip series. In contrast, if the value of estimated value A3 isless than the critical DF values, unit root trial can non be rejected. In this instance, we concludethat there is no stationary in the clip series.

After making all the procedure, we can find whether there is a job or non by looking at the Durbin Watson values.

Durbin-WatsonStatistics shows that there is an autocorrelation job if the consequence shows less than one or gets near to zero, intending the value is far from two. In contrast, there is no autocorrelation occur when the consequence shows near to two.

It can be used to work out the job of autocorrelation.

Autocorrelation shows that there is an independent of each other of mistake footings. This can be detected by looking at the Durbin Watson statistic. When this job occurs, there is an underestimate of the arrested development coefficient of the standard mistakes.

Harmonizing to Anuar ( 1998 ) and supported by Gujarati ( 1995 ) , it besides occurs in the clip series which is related with the correlativity the same variables and non for different variable. The relationship between two variables can be explained as follows:

ut = ?ut -1 + ?t, -1 & A ; lt ; ? & A ; lt ; 1 ( 3.5 )

Where:

? = Coefficient of car covariance

?t= Stochastic distribution

In the classical theoretical account, it assumes that the perturbation ui in such correlativity does non be. It meansthat one disturbancetermis non influencedby other perturbation footings and non associating to other observations. It can be expressed as follows:

## E ( uiuj ) = 0, i? jor,

## E ( u ) = 0, E ( ?2 ) = ?u2 and E ( uiuj ) = 0 ( 3.6 )

Beginning: Gujarati D.N, ( 1995 )

Multicollinearity shows when there are extremely correlated of each independent variable and occurs when there is extremely value of R2 and merely few variables are important to explicate the dependant variable. This job can be tested by utilizing Variance Inflation Factors ( VIF ) trial. When the informations had equal or more than 10 value of VIF centered, means the information had a multicollinearity job. In contrast, when the information had less than 10 value of VIF centered, means there is no multicollinearity job occurs.

## 4. Findingss

In this chapter, the findings of the survey will be analysed. This includes calculatingthe significance between variables, the relationships, the readings, and besides the arrested development jobs. The information will be analysed by utilizing the E-view plan to run a arrested development. The determination could be obtained as follows:

## 4.1 Stationary trial

Both table 1 and table 2 show the consequences of the Augmented Dickey-Fuller ( ADF ) , which classify the unit root trials for Malaysia and Thailand. The trials were applied to each variable over the period of 1961-2006 with a clip tendency at the variables degree and at their stationary of different.

The arrested development analysis is done to analyze the correlativity between the dependant variable, which is the production of the gum elastic and the independent variables, which are country, labor and output. From this arrested development, it will be determined whether there is a stationary or no stationary in informations, which is to observe the specious consequences, or of doubtful value, which is affecting the clip series of data.We can reject or accept the Unit Root hypothesis utilizing the DF trial.

## Table 1: ADF Unit Root Test consequence of clip series variables for Rubber Production, Area,

## Labour and Yield for Malaysia.

Variables

Degree

1st difference

Production

-2.167706

-8.936071***

Area

-3.039886

-6.376800***

Labor

-2.653490

-4.728806***

Output

-2.278766

-8.592401***

Beginning: E-views 7.0 Schwarz information

Notes: ***Significant at 1 % , **Significant at 5 % , *Significant at 10 % , critical value of ADF trials are based on one sided p-values.

Based on the ADF trial, the DF value of variable ( Production, Area Labour, and Yield ) are more than any of critical values of continuing DF values, unit root hypothesis will be rejected. In that state of affairs, we conclude that there is stationary in clip series. Furthermore, the consequence shows that all the variables are stationary significance at 1st difference and besides each of them significance at 1 % .

## Table 2: ADF Unit Root Test consequence of clip series variables for Rubber Production, Area,

## and Yield for Thailand.

Variables

Degree

1st difference

Production

-1.347489

-5.209653***

Area

-1.322762

-6.831533***

Output

-1.634102

-4.913268***

Beginning: E-views 7.0 Schwarz information

Notes: ***Significant at 1 % , **Significant at 5 % , *Significant at 10 % , critical value of ADF trials are based on one sided p-values.

Based on the ADF trial, the DF value of all variables ( Production, Area and Yield ) is more than any of critical values of continuing DF values. So, these variables of clip series besides are stationary and the Unit Root Test would be rejected.Furthermore, the consequence shows that all the variables are stationary significance at 1st difference and besides each of them significance at 1per cent.

## 4.2 Log-Log Regression trial

## Malaysia

## Table 3: The Double Log estimated of Area, Labour and Yield equation over the

## period 1961-2006.

lnProduction= ?a‚ˆ + ?a‚?lnArea +µ

( Model 1 )

lnProduction= ?a‚ˆ + ?a‚?lnLabour + µ

( Model 2 )

lnProduction= ?a‚ˆ + ?a‚?lnYield +µ

( Model3 )

Changeless

1.334565

6.902260

-0.512884

Coefficient

0.768991***

0.041085

1.062754***

R-squared

0.209560

0.024284

0.473431

Adjusted R-squared

0.191596

0.001593

0.461464

F-statistic

11.66522

1.070223

39.55984

Akaike info standard

-0.092194

0.139744

-0.498401

Durbin-Watson stat

0.283515

0.223427

0.430912

Notes: Coefficients of variable is important *** at 1 % , ** at 5 % and *at 10 %

## lnProduction= ?a‚ˆ + ?a‚?lnArea +µ

lnProduction = 1.334565+ 0.768991Area

Se = ( 1.684795 ) ( 0.225151 )

t-Stat = ( 0.792123 ) ( 3.415439 )

P Value = ( 0.4325 ) ( 0.0014 ) R2 = 0.209560

## Interpretations:

## R2 = 0.209560

It means that about 21 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of country. There is a per centum of dependant variable that can be explained by the independent variable. In contrast, there is 79 per centum of dependent variable can non be explained by the independent variable.

The low grade of account agencies it is proposing that the theoretical account does non really good suit the information.

The partial incline coefficient of 0.768991 steps the snap of the gum elastic production with regard to the country. Specifically, this figure states at 1 percent addition in country leads to a 0.77 per centum additions in the gum elastic production.

## lnProduction= ?a‚ˆ + ?a‚?lnLabour + µ

lnProduction = 6.902260 + 0.041085Labour

Se = ( 0.185027 ) ( 0.039715 )

t-Stat = ( 37.30403 ) ( 1.034516 )

P Value = ( 0.0001 ) ( 0.3067 ) R2 = 0.024284

## Interpretations:

## R2 = 0.024284

It means that about 2.4 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of labor. There is 2.4 per centum of dependent variable can be explained by independent variable. In contrast, there is 97.4 per centum of dependent variable can non be explained by the independent variable.

The low grade of account agencies it is proposing that the theoretical account does non really good suit the information.

The partial incline coefficient of 0.041085 steps the snap of gum elastic production with regard to the labor. Specifically, this figure states that 1 percent addition in labour leads to a 0.04 per centum additions in gum elastic production.

## lnProduction= ?a‚ˆ + ?a‚?lnYield +µ

lnProduction = -0.512884 + 1.062754Yield

Se = ( 1.208740 ) ( 0.168968 )

t-Stat = ( -0.424313 ) ( 6.289661 )

P Value = ( 0.6734 ) ( 0.0001 ) R2 = 0.473431

## Interpretations:

## R2 = 0.473431

It means that about 47 per cent of the fluctuation in the ( log ) of production is explained by the ( log ) of output. There is 47 per cent of dependent variable can be explained by independent variable. In contrast, there is 53 per cent of dependent variable can non be explained by independent variable.

The low grade of account agencies it is proposing that the theoretical account does non suit the informations really good.

The partial incline coefficient of 1.062754 steps the snap of gum elastic production with regard to the output. Specifically, this figure states at 1 percent addition in country leads to a 1.06 per centum additions in gum elastic production.

## Table 4: The Double Log estimated of Area, Labour and Yield equation over the

## period 1961-2006.

Particulars ( Model 4 )

Valuess

Variables:

lnArea

lnLabour

lnYield

## Coefficient

0.257312

0.111938

1.389763***

Changeless

-5.289405

R-squared

0.751515

Adjusted R-squared

0.733333

F-statistic

41.33327

Akaike info standard

-1.139155

Durbin-Watson stat

1.016990

Notes: Coefficients of variable is important *** at 1 % , ** at 5 % and * at 10 %

lnProduction = -5.289405+ 0.257312 Area + 0.111938 Labour + 1.389763 Output

Se = ( 2.169469 ) ( 0.485409 ) ( 0.084622 ) ( 0.232363 )

t-Stat = ( -2.438110 ) ( 0.530093 ) ( 1.322804 ) ( 5.980991 )

P Value = ( 0.0192 ) ( 0.5989 ) ( 0.1932 ) ( 0.0001 )

R2 = 0.751515

F = 41.33327 ( 0.000001 )

## R2 = 0.751515

It means that about 0.75 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of country, labor and output. There is 75 per centum of dependent variable can be explained by independent variable. In contrast, there is 25 per centum of dependent variable can non be explained by independent variable.

The high grade of account agencies it is proposing that the theoretical account fits the informations really good.

The partial incline coefficient of 0.257312 steps the snap of gum elastic production with regard to the country. Specifically, this figure states that keeping the labor and output changeless, at 1 percent addition in country leads to a 0.25 per centum additions in gum elastic production.

The partial incline coefficient of 0.111938 steps the snap of gum elastic production with regard to the labor. Specifically, this figure states that keeping the country and output changeless, at 1per cent addition in labour leads to a 0.11 per centum additions in gum elastic production.

The partial incline coefficient of 1.389763 steps the snap of gum elastic production with regard to the output. Specifically, this figure states that keeping the country and labor invariable, at 1 percent addition in output leads to a 1.39 per centum additions in gum elastic production.

## Intercept = -5.289405

Meanss, this figure states an mean value of lnProduction when lnArea, lnLabour and lnYield are zero.

## Thailand

## Table 5: The Simple Log-Log estimated of Area and Yield equation over the period

## 1961- 2006.

lnProduction= ?a‚ˆ + ?a‚?lnArea +µ

( Model 1 )

lnProduction= ?a‚ˆ + ?2lnYield +µ

( Model 2 )

Changeless

-16.84112

0.989125

Coefficient

2.180200***

0.989125***

R-squared

0.773542

0.918668

Adjusted R-squared

0.768396

0.916820

F-statistic

150.2969

496.9954

Akaike info standard

1.319162

0.295139

Durbin-Watson stat

0.122048

0.147062

Notes: Coefficients of variable is important * at 1 % , ** at 5 % and *** at 10 %

## lnProduction= ?a‚ˆ + ?a‚?lnArea +µ

lnProduction = -16.84112 + 2.180200Area

Se = ( 2.479137 ) ( 0.177837 )

t-Stat = ( -6.793136 ) ( 12.25956 )

P Value = ( 0.0001 ) ( 0.0001 )

R2 = 0.773542

## Interpretations:

## R2 = 0.773542

It means that about 77 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of country. There is 77 per centum of dependent variable can be explained by independent variable. In contrast, there is 23 per centum of dependent variable can non be explained by independent variable.

The high grade of account agencies it is proposing that the theoretical account fits the informations really good.

The partial incline coefficient of 2.180200 steps the snap of gum elastic production with regard to the country. Specifically, this figure states at 1 percent addition in country leads to a 2.18 per centum additions in gum elastic production.

## lnProduction= ?a‚ˆ + ?a‚?lnYield +µ

lnProduction = 0.989125 + 1.423787Yield

Se = ( 0.564473 ) ( 0.063866 )

t-Stat = ( 1.752299 ) ( 22.29339 )

P Value = ( 0.0867 ) ( 0.0001 )

R2 = 0.918668

## Interpretations:

## R2 = 0.918668

It means that about 92 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of output. There is 92 per centum of dependent variable can be explained by independent variable. In contrast, there is 8 per centum of dependent variable can non be explained by independent variable.

The high grade of account agencies it is proposing that the theoretical account fits the informations really good.

The partial incline coefficient of 1.423787 steps the snap of gum elastic production with regard to the output. Specifically, this figure states at 1 percent addition in country leads to a 1.42 per centum additions in gum elastic production.

## Table 6: The Double Log-Log estimated of Area and Yield equation over the

## period 1961-2006.

Particulars ( Model 3 )

Valuess

Variables:

lnlnArea

lnlnYield

## Coefficient

1.070982***

0.639566***

Changeless

-1.608141

R-squared

0.999989

Adjusted R-squared

0.999988

F-statistic

1891232

Akaike info standard

-13.74614

Durbin-Watson stat

1.030239

Notes: Coefficients of variable is important *** at 1 % , ** at 5 % and * at 10 %

lnProduction = -1.608141 + 1.070982Area + 0.639566Yield

Se = ( 0.003868 ) ( 0.001819 ) ( 0.000707 )

t-Stat = ( -415.7971 ) ( 588.8488 ) ( 904.1659 )

P Value = ( 0.0001 ) ( 0.0001 ) ( 0.0001 )

R2 = 0.999989

F = 1891232 ( 0.000001 )

## R2 = 0.999989

It means that about 99.9 per centum of the fluctuation in the ( log ) of production is explained by the ( log ) of country, labor and output. There is 99.9 per centum of dependent variable can be explained by independent variable. In contrast, there is 0.1 per centum of dependent variable can non be explained by independent variable.

The partial incline coefficient of 1.070982 steps the snap of gum elastic production with regard to the country. Specifically, this figure states that, keeping the labor and output changeless, at 1per cent addition in country leads to a 1.07 per centum additions in gum elastic production.

The partial incline coefficient of 0.639566 steps the snap of gum elastic production with regard to the output. Specifically, this figure states that, keeping the country and labor invariable, at 1 per cent addition in output leads to a 0.64 per centum additions in gum elastic production.

Intercept = -1.608141

Meanss, this figure states an mean value of lnProduction when lnArea and lnYield are zero.

## 4.3 Variance Inflation Factors ( VIF ) Trial

## Table5: VIF trial of Area, Labour and Yield in Malaysia

Variable

Centered VIF

lnArea

13.57438*

lnLabour

16.99814*

lnYield

3.663947

Notes: * shows there was equal or more than 10 value of centered VIF

This tabular array shows that there is a multicollinearity job occurs for Area and Labour. This is because the value of informations is more than 10 value of centered VIF.

## Table6: VIF trial of Area and Yield in Thailand

Variable

Centered VIF

lnlnArea

1.977359

lnlnYield

1.977359

Notes: * shows there was equal or more than 10 value of centered VIF

For this tabular array, there is no multicollinearity job occurs for both Area and Yield. This is because the value of informations is less than 10 value of centered VIF.

## 5. Recommendations and Decision

In order to prolong in NR production, Malaysia is encouraged to increase their competence, expertness, and cognition in gum elastic production of their gum elastic industry, ( Seminar On Sustainability of Rubber Industry, 2009 ) . In contrast of Thailand, the state will acquire the benefit if there is an optimal lead from both sides if there are good cooperated between supply and demand ( RRIT, 2005 ) . Based on the survey, Malaysia needs to develop their worker how to work good by supplying them expertness and counsel to follow up their work public presentation and advancement. The labor should besides supply the motivated intensive such as fillips and wagess for the hardworking workers. For the country, they should happen the right country by sing its temperature and the status of land. All of these attempts can be used to keep the sustainability in NR production in order to vie with other manufacturers of NR production, particularly Thailand.

In decision, the ADF trial done with both of Malaysia and Thailand had stationary in their informations which does non demo the specious job. For Simple Double Log estimated of Area, Labour and Yield of Malaysia shows that labor insignificant to explicate its relationship with gum elastic production. All of the informations besides show there are autocorrelation jobs occur because of their values of informations are far from value 2 of Durbin-Watson. In contrast for the Thailand, its simple log-log estimated of Area and Yield show that the full variables are important to explicate their relationship with gum elastic productions. All of the informations besides show there are autocorrelation jobs occur because of their value of informations is far from value 2 of Durbin-Watson. This job of autocorrelation occurs because of the demand of the gum elastic production to add the other variables to explicate accurately relationship between dependant variable and independent variables.

For Multiple Double Log estimated of Area, Labour and Yield of Malaysia shows that country and labor are undistinguished to explicate their relationship with gum elastic production. In contrast for the Thailand of Double Log-log estimated of Area and Yield shows that all of variables are important to explicate their relationships with gum elastic productions. Both Malaysia and Thailand informations show that there are autocorrelation jobs occur in the multiple arrested development theoretical accounts. This job occurs because of the cobweb phenomenon such as catastrophe, inundation or rain consequence to the production.

Based on the determination on a individual arrested development theoretical account in Malaysia, the consequence shows merely labour is undistinguished variable to explicate the relationship of sustainable to the NR production. This is because diseconomy of graduated table will happen in the long tally. At that state of affairs, the more the labor will take to inefficiency in their production because some of the labor will non utilize all of their abilities in the production procedure. So, in this instance, it will take to impact the depression of NR production. It will convey the same job in multiple arrested developments for Malaysia ; the consequence besides found that labor and country are undistinguished to explicate the relationship of sustainable to the NR production. The ground for labor is that they are non competent plenty in NR production and for country because of most of the land are unsuitable to works the gum elastic such as their temperature and the status of land.