IDEAS home Printed from https://ideas.repec.org/a/ags/saeasj/359035.html
   My bibliography  Save this article

Assessment of Sri Lankan Cinnamon Export Competitiveness in the Global Market

Author

Listed:
  • Hewavitharana, S.D.
  • Kuruppu, I.V.
  • Priyankara, E.A.C.

Abstract

Cinnamon is the most valuable and important spice export crop in Sri Lanka which accounts over 85% of the world cinnamon exports. Competitiveness is one of the major challenges in cinnamon trade in an era of free trade. Intense competition faced by Sri Lanka with other countries results in adverse impacts on cinnamon trade thus decreasing its potential trading opportunities. This study aims to analyze the export competitiveness of Sri Lankan cinnamon in the world market. The study also considers the world’s top 10 cinnamon exporters. The contribution of this paper is that it measures the comparative advantage using a range of indexes namely the Balassa Revealed Comparative Advantage Index (BRCA), Additive Revealed Comparative Advantage Index (ARCA), Normalized Revealed Comparative Advantage Index (NRCA), Revealed Symmetric Comparative Advantage Index (RSCA) and Trade Balance Index (TBI) for the period from 2001 to 2020. Data are extracted from the International Trade Center (ITC) trade map (COMTRADE) database. BRCA (566.49), ARCA (0.01207), NRCA (7.28*10-6), and RSCA (0.996) result indicate that Sri Lanka has the highest comparative advantage in the global cinnamon export market. Madagascar (0.999) has the highest TBI value. The result of product mapping indicates that Sri Lanka, Madagascar, Vietnam, Indonesia and China have both comparative advantage and positive trade balances over other countries.

Suggested Citation

  • Hewavitharana, S.D. & Kuruppu, I.V. & Priyankara, E.A.C., 2022. "Assessment of Sri Lankan Cinnamon Export Competitiveness in the Global Market," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 23(01), December.
    • Handle: RePEc:ags:saeasj:359035
    DOI: 10.22004/ag.econ.359035
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/359035/files/Cinnamon.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.359035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:ags:saeasj:359035. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/slaeaea.html .

    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.