Much, Tongpan and Sirisupluxana (2013) analyzed the supply response for
natural rubber in Cambodia by using partial adjustment and adaptive expectation
mechanism. The rubber planted area and rubber yield are set as supply response in
their study. They used rubber prices from the last two years (year t-2), alternative crop
prices (maize), and planted area in the previous year as independent variables in
acreage response model. They used rubber prices in the previous year, alternative crop
prices (cassava), actual rainfall, and rubber yield in the previous year as independent
variables in the yield response model. The finding showed that the expansion of
rubber area planted, improvement in the rubber yield and rubber supply are affected
by rubber price, rainfall and alternative crop prices. Other factors such as the planted
area in the previous year and rubber yield in the previous year also relate to rubber
supply. The rubber cultivator responsiveness to the natural rubber price was inelastic
in the short- run but elastic in the long- run. They recommended that in order to
increase rubber production, the rubber growers should be motivated by improved
technology that increases rubber yield.
Much, Tongpan and Sirisupluxana (2013) analyzed the supply response fornatural rubber in Cambodia by using partial adjustment and adaptive expectationmechanism. The rubber planted area and rubber yield are set as supply response intheir study. They used rubber prices from the last two years (year t-2), alternative cropprices (maize), and planted area in the previous year as independent variables inacreage response model. They used rubber prices in the previous year, alternative cropprices (cassava), actual rainfall, and rubber yield in the previous year as independentvariables in the yield response model. The finding showed that the expansion ofrubber area planted, improvement in the rubber yield and rubber supply are affectedby rubber price, rainfall and alternative crop prices. Other factors such as the plantedarea in the previous year and rubber yield in the previous year also relate to rubbersupply. The rubber cultivator responsiveness to the natural rubber price was inelasticin the short- run but elastic in the long- run. They recommended that in order toincrease rubber production, the rubber growers should be motivated by improvedtechnology that increases rubber yield.
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