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
