IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v28y2024i2p238-251.html
   My bibliography  Save this article

Constructing the agriculture purchasing managers' index in the Taiwan rice industry

Author

Listed:
  • Wen-Shin Lin
  • Yi-Ting Tseng
  • Tzong-Ru Lee

Abstract

This study takes the concept of purchasing managers' index (PMI) into consideration to construct agriculture purchasing managers' index (APMI) in the rice industry. The purpose is to provide comprehensive and objective investment reference and economic conditions for the agriculture business and the government to make the decision. This study takes an important crop in Taiwan, the rice industry in 2016 as the case study. The data from the council of agriculture (COA) and agriculture and food agency is used to construct the APMI and formula using principal component analysis (PCA). The results indicated that the result of APMI using PCA with four variables (productivity, price of paddy, planted area, and export quantity) has the highest correlated coefficient (r = 0.94) with revenue. The higher the correlated coefficient, the better the ability to use APMI to demonstrate the economic status of the industry. In conclusion, constructing the APMI formula using PCA could provide suitable investment months in the rice industry.

Suggested Citation

  • Wen-Shin Lin & Yi-Ting Tseng & Tzong-Ru Lee, 2024. "Constructing the agriculture purchasing managers' index in the Taiwan rice industry," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 28(2), pages 238-251.
    • Handle: RePEc:ids:ijecbr:v:28:y:2024:i:2:p:238-251
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=140825
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:28:y:2024:i:2:p:238-251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.