Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Spatial Integration of Crumb Rubber Markets within ASEAN Countries

Author(s): Ansofino, Zusmelia, Yola Malinda, Lovelly Dwinda Dahen

This article examines the relationship between market and integration among local, national and regional rubber area production with ASEAN context. The research method used are a panel data regression model which begins with cointegration testing of the Johansen test model and fixed effect and random effect methods. The result of study indicates show that in the first model of the paper explains about the model of co-integration rubber market among the several regencies in the West Sumatra province. The Sijunjung, Dharmasraya and Pasaman regency are the main rubber plantation and production in the West Sumatra province. However, those regencies have not yet integrated to Padang City as national center activities in the region. The second model is on co-integration rubber market between the ten provinces in the Sumatra Island. Among the ten provinces that only North Sumatra, Riau and South Sumatra are already integrated with ASEAN rubber market mainly Singapore, Malaysia, Thailand and Philipine, while Singapore has the highest rubber trade connectivity with the centers of the Sumatra economic corridor due to lower import and export costs compared to other ASEAN countries.