Natural Rubber Trade and Production Toward Sustainable Development Goals: A Global Panel Regression Analysis

Natural rubber is one of the most important agricultural commodities used for various purposes around the world. In 2020, the global demand for natural rubber products was approximately 12.5 million tonnes. Over the past decade, the supply of natural rubber increased significantly due to the expansion of plantation areas for natural rubber in Asian countries. Currently, the largest importer of natural rubber is China, accounting for 40% of global consumption and 23.2% of global imports. As global leaders are focusing on achieving the UN’s Sustainable Development Goals (SDGs), the debate on sustainable rubber trade and production has escalated. This study investigates the key natural rubber production factors influencing the global natural rubber trade flows. The fixed effects panel regression method was employed to analyze the effects of key factors influencing the import and export of natural rubber. The country-level data were gathered from various international sources such as UN Comtrade, World Bank and FAO. The outcome variables of this study are natural rubber import and export volume, while the explanatory variables include natural rubber harvest area, natural rubber producer price, agricultural support, fertilizer consumption, annual mean temperature and global GDP. The results showed that natural rubber imports and exports are significantly associated with natural rubber harvest area, producer price, agricultural support and annual mean temperature. The findings of this study can be used by policymakers to implement appropriate policies and agricultural supporting schemes to foster sustainable natural rubber trade and production in accordance with the UN’s Sustainable Development Goals.