2017-03: Demand for seafood exports in Sri Lanka: Has Sri Lanka gained competitiveness after civil war (Working paper)
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Herath, Madhavie
Ratnasiri, Shyama
Walisinghe, Ranjika
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Rohde, Nicholas
Naranpanawa, Athula
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15 pages
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Abstract
Since liberalization of trade barriers in 1977, Sri Lanka has attempted to formulate policies to expand the export sector significantly. After the cessation of 30 years of civil war in 2008, this effort has been directed to industries specifically affected by this period. The seafood industry is one such industry that falls in to this group because more than 60% of the island's coastal belt producing seafood is spread in war affected Northern and Eastern provinces. In this study, demand for seafood exports were estimated using ARDL bounds test approach to assess the competitiveness of Sri Lankan seafood in the export market in post-war era. The results show that the long-run elasticities of income and relative prices fell over the study period. Structural break test results attributed this observation to caseation of the conflict. In combination, these two outcomes suggest that after war Sri Lanka is improving on its competitiveness in the export markets studied.
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Copyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
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Economics and Business Statistics
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Subject
Q22 - Renewable Resources and Conservation: Fishery; Aquaculture
C32 - Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
C54 - Quantitative Policy Modeling
Export demand
ARDL bound testing
seafood
structural change