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Economic Cooperation in Natural Rubber: The Impacts on Natural Rubber’s World Supply and Indonesia’s Economy

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  • Verico, Kiki

Abstract

In 1999, the International Natural Rubber Agreement (INRA) which had regulated the world’s natural rubber since 1979 collapsed. This paper analyzed the impacts of this international agreement on both the global trade and supply of natural rubber as well as on Indonesia, a major producer of rubber. This study adopted two approaches in its assessment: (1) The Cournot-Nash Equilibrium, which analyzes the “external effects” or the global market conditions for natural rubber before and after the collapse of INRA; and (2) The Input-Output Table Simulation on rubber products, which assesses the “internal effects” or the economic conditions in Indonesia before and after the collapse of INRA.

Suggested Citation

  • Verico, Kiki, 2013. "Economic Cooperation in Natural Rubber: The Impacts on Natural Rubber’s World Supply and Indonesia’s Economy," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 0(Number 2), pages 1-19, December.
  • Handle: RePEc:ags:phajad:199419
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    File URL: http://ageconsearch.umn.edu/record/199419/files/AJAD_2013_10_2_5Verico.pdf
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    Cited by:

    1. Kopp, Thomas & Dalheimer, Bernhard & Bruemmer, Bernhard & Herlambang, Mirawati Yanita & Alamsyah, Zulkifli, 2018. "Can the South East Asian Rubber Cartel Manipulate International Rubber Prices?," 2018 Annual Meeting, August 5-7, Washington, D.C. 273832, Agricultural and Applied Economics Association.
    2. Caramugan, Karlo Martin & Bayacag, Purisima, 2016. "Price Bubble in Selected ASEAN Agricultural Exports: An Application of the Generalized Supremum Augmented Dickey Fuller," MPRA Paper 74807, University Library of Munich, Germany.

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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