The Impact of the Changes of the World Crude Oil Prices On the Natural Rubber Industry in Malaysia

摘要: This paper investigates the impact of world crude oil price on supply, demand, stock, synthetic rubber and natural (NR) prices (represented by SMR20) Malaysian NR industry using econometric system equations. The study utilises monthly data from January 1990 - December 2010. A preliminary analysis focused univariate properties series for unit root. Granger causality test is conducted to examine direction relationship between variables. time model estimated Vector Error Correction Method (VECM) with co-integration method residual error correction results indicate that (SMR20) are significantly co-integrated, which means long-term equilibrium variables met.