The relationship between the price of natural rubber with exchange rate, production and export / Muhammed Fakruzi Mat Arifin

The study concentrates on the relationship between the price of Natural Rubber with the exchange rates (USO, GOM, and YEN), production and export volume of NR. The main purpose of this research is the natural rubber price that has been observes to fluctuate over the years. The volatility of NR prices from 1993 to 2004 shows an instability pattern, which sometimes too high and sometimes too low. The price instability and hence uncertainty pose significant challenge to the decision makers who depend on NR prices to minimize risk. Researcher use these independent variable because based on the previous study, the main factor to determine the price of NR is exchange rate, demand and supply, The secondary data is collected based on monthly basis taken from January 1993 to November 2004 was analyzed for natural rubber prices of SMR20, exchange rate of USO, GOM & YEN, production and export volume of Malaysia natural rubber. This study is using both simple linear regression and multiple linear regression method. Based on analysis from simple linear regression and multiple linear regression models, only the production volumes of NR has significant represent the NR prices. Meanwhile all selected exchange rates (USO, GOM & YEN) and export volume of NR shows that there is no significant relationship toward the NR prices.