Scope of Research Competitiveness Analysis and Factors Affecting Trade Flow of Natural Rubber in International Market

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