7 2. Increase knowledge in applied science, which has been obtained through
analytical problem solving skills. 3. Develop and apply research results.
1.5 Scope of Research
In conducting the present research, a few limitations have been applied that aim to make the research more focused in achieving its goals.
1. The period of analysis is 11 years, from the year 2003 to 2013. 2. The type of rubber used in this analysis is natural rubber and gums, in
primary forms, plates, etc. with the code 4001 and HS1992. 3. The independent variables that are used in this study are the production of
natural rubber from exporting countries, real GDP of importing countries, remoteness, and the real exchange rate.
4. The dependent variable is the volume of exports of natural rubber from three main exporting countries.
5. The export destinations are the ten major importing countries that have the highest share of import from the three main exporting countries of natural
rubber.
2 LITERATURE REVIEW
2.1 Competitiveness Analysis Method
Competitiveness is usually identified by productivity, which is the level of output produced for each unit of input used. Increasing productivity means
increasing the number of physical inputs capital and labor, improving the quality of inputs used and improving the technology total factor productivity.
Competitiveness can also be seen as the ability of a country to produce goods and services on an international scale through the mechanism of free and fair trade as
well as maintaining and improving the real income in the long term. An analytical outlook on the competitiveness of a commodity can be determined from two
indicators, comparative advantages and competitive advantages.
Competitiveness can be analyzed by various methods of analysis. The method used must be in accordance with the specific purpose of research. Many
methods can be used to calculate and to assess the competitiveness of agricultural commodities, such as Revealed Comparative Advantages RCA and the Policy
Analysis Matrix PAM. The Policy Analysis Matrix PAM is an analysis method that uses three indicators, namely private profits, social or economic advantages,
and a competitiveness analysis in the form of comparative and competitive advantages, as well as using the analysis of the impact of government policies on
commodities. The Revealed Comparative Advantage RCA method can be used to measure the comparative advantage of a commodity in the current economic
conditions, along with the scope of the macro-economy or in international trade.
The RCA analysis method has been widely used by researchers in many previous studies. Previous research conducted by Hubbard, et al. 2008, used the
8 RCA analysis method to investigate the condition of Hungarian agricultural
competitiveness in the international market. The results showed that an agricultural commodity in Hungary is not yet highly competitive in the
international market. RCA was also used in another previous study, conducted by Serin, et al. 2008. The research is looks at the tomato, olive oil and fruit
beverages industries in Turkey and their competitiveness in the EU market. The purpose of Serin’s research was to give the information to the government
regarding the competitiveness of the three goods from Turkey in the international market. This information was intended to help the Turkish government make a
policy to develop the commodity, which had the highest RCA. The result showed that the olive oil and fruit beverages industries have high competitiveness, while
the tomato industry does not. Wu, et al. 2012, focused on the rabbit meat industry in China, with the aim to provide information to the government in order
to develop this industry. The results from this study indicate that China’s rabbit meat industry is highly competitive in comparison to other exporting countries.
The RCA analysis method is also often used to see the competition among the producing countries of commodities around the world. Valenciano, et al.
2012 conducted a study, which aims to determine the competitiveness of pear commodities in the world market. In this study, Valenciano look at the condition
of each country’s competitiveness as a pear exporter in the world market, and then determined which countries have high competitiveness or low competitiveness.
Leishman, et al. 2012 also had interesting research employing the use of the RCA method. They conducted research regarding the wool commodities on the
world market. The results indicate that Australia is a country that has the highest competitiveness in the world for wool.
The result of the RCA method essentially aims to determine which countries are indeed having high competitiveness or low competitiveness in a good
compared to other exporting countries. If the results show a high level of competitiveness, then the country should maintain the condition, specialize to
these goods and trade with another country. On the other hand, if the results show a low level of competitiveness, then the country should improve the trade
condition and switch to specialize in other commodities. Morshed, et al. 2012 conducted research regarding the competitiveness of fruit litchi and longan fruit in
China. The results showed that the commodities are not competitive, so the researchers suggested to the government to improve the system of agribusiness
from upstream to downstream in both commodities, thus anticipating an increase in its competitiveness in the international market.
In addition to the RCA method, there are some researchers that use the Policy Analysis Matrix PAM as a method of analysis in their research. Besides
being able to determine the condition of competitiveness, PAM is also used by researchers with the intent of looking at the impact of government policies, while
the scope of the research is usually on a local basis, not international. The PAM method has been used in several research studies that are related to
competitiveness and the impact of policy on some commodities. Several examples of the PAM method have been conducted in Indonesia, primarily Wiji 2007
which focused on citrus commodities in West Kalimantan, while Nuryanti 2010 did a research about cocoa in Kudat District. From the results of these three
