Paddy Production Analysis in Non-Granary Areas

Abstract

Currently, it has been shown that Malaysia has a low production of paddy. That is one of the reasons why Malaysia has been importing rice from other countries. To help Malaysia overcome the rice output shortage, this study has decided to determine whether there is an effect of planted area and paddy yield towards paddy production in a long-run scenario. This study focuses on analysing the paddy production of non-granary areas in Johor, Melaka, Negeri Sembilan, Pahang, Pulau Pinang, and Terengganu from 2011 until 2020. The paddy production that is being analysed is during the main season in Malaysia. In order to determine the presence of the long-run relationship, this study employed the Pedroni cointegration test. It was found that the majority of the statistical tests from the Pedroni cointegration test are significant at 5% level of significance. It can be concluded that there is a long-run relationship between planted area, paddy yield, and paddy production. Thus, it is recommended for future researchers to investigate in detail these effects to help maximise the paddy production, especially in the non-granary areas.