Determinants of capital formation in the Malaysian rubber estate sector


Citation

Muzafar Shah Habibullah, . Determinants of capital formation in the Malaysian rubber estate sector. pp. 223-232. ISSN 0127-7065

Abstract

This study empirically determines the factors affecting capital formation in the Malaysian rubber estate sector. A partial adjustment adaptive expectation model was tested on annual time series data over the period 1961 to 1985 The results suggest that capital formation in Malaysian rubber estates is determined by future prices of rubber interest rate on financial assets interest rate on agricultural loans and size of holdings. The results indicate at least two areas where the government can play an active role in promoting investments in the rubber estate sector i.e. by providing cheap funds by varying the interest rate on loans in favour of producers and sustaining income by stabilising rubber prices.


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Abstract

This study empirically determines the factors affecting capital formation in the Malaysian rubber estate sector. A partial adjustment adaptive expectation model was tested on annual time series data over the period 1961 to 1985 The results suggest that capital formation in Malaysian rubber estates is determined by future prices of rubber interest rate on financial assets interest rate on agricultural loans and size of holdings. The results indicate at least two areas where the government can play an active role in promoting investments in the rubber estate sector i.e. by providing cheap funds by varying the interest rate on loans in favour of producers and sustaining income by stabilising rubber prices.

Additional Metadata

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Item Type: Article
AGROVOC Term: Capital formation
AGROVOC Term: Rubber industry
AGROVOC Term: Factors of production
AGROVOC Term: Agricultural prices
AGROVOC Term: Market prices
AGROVOC Term: Interest rates
AGROVOC Term: Financial market
AGROVOC Term: Gross domestic product
AGROVOC Term: Expenditure
AGROVOC Term: Assets
Geographical Term: Malaysia
Depositing User: Ms. Suzila Mohamad Kasim
Last Modified: 28 Apr 2025 05:13
URI: http://webagris.upm.edu.my/id/eprint/23534

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