Analysing the effects of cost-benefit, marketing efficiency, and return on investment on comparative advantage of coconut farming in Malaysia

The aim of this study is to investigate how Malaysian coconut farming’s comparative advantage is impacted by cost-benefit, marketing efficiency, and return on investment. The theory of comparative advantage serves as the theoretical basis for this investigation. This study employs quantitative research. The data were collected from the coconut farmers in 12 states of Malaysia. One hundred and thirty respondents were randomly chosen from 160 total population of 160 registered coconut farmers. The information gathered from 123 respondents was analysed using Statistical Package for the Social Sciences (SPSS) version 31 and Smart Partial Least Squares (SmartPLS4). The findings of the study provided support for the macroeconomic theory. This study demonstrated that with a probability value of 0.075, marketing efficiency has no favourable impact on the comparative advantage of coconut cultivation. The results of the study show that the comparative advantage of coconut farming is significantly impacted by cost-benefit. The statistical significance of this association is confirmed by the probability value of 0.01, which is much lower than the significance level of 0.05. The third hypothesis of this study provided evidence that the proposed connection between return on investment and comparative advantage was statistically significant at p < 0.03. The study also shows that the t-value of 1.782 falls short of the critical value of 1.96, indicating that the market environment does not significantly mediate the relationship between marketing efficiency and the comparative advantage of coconut. However, with a large t -value of 6.198 and a low p-value of 0.01, there is solid statistical backing that the market environment plays a crucial role in mediating the relationship between cost-benefit and the comparative advantage of coconut. The t -value of 2.172 was significant at p < 0.03, is greater than 1.96, and shows that the relationship is statistically significant. This suggests that the market environment really does play a role in mediating the connection between return on investment and the comparative advantage of coconut. The results provide valuable insights for policymakers, especially in evolving markets like coconut farming. Understanding the role of cost-benefit and marketing efficiency can help in designing policies that foster comparative advantages and coconut industry growth.