IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i4p224-227.html
   My bibliography  Save this article

The Export Performance of the Sri Lankan Tea: An Econometric Analysis

Author

Listed:
  • M. W. A. De Silva

    (Department of Decision Sciences, Faculty of Management Studies & Commerce, University of Sri Jayewardenepura, Colombo, Sri Lanka)

  • N. S. Cooray

    (Graduate School of International Relations (GSIR), International University of Japan, 777 Kokusai-Cho, Minami Uonuma-Shi, Niigata 949-7277, Japan)

Abstract

Sri Lanka is the fourth-largest tea producer and the world’s third-biggest tea exporter. It is vital to investigate why Sri Lanka lost her second place as an exporter of tea and how she can regain this status. Current research fills the literature gap by exploring the tea export industry. The current research uses time-series data from 1989 to 2020, and the time-series properties were evaluated using the ADF unit root test. The Autoregressive Distributed Lag (ARDL) Model looked at the long-run and short-run relationship between variables. The ARDL bound test showed that tea export is cointegrated with the other three variables (tea production, real exchange rates, and foreign exchange earnings). When considered, the foreign income has a substantial long-run and short-run influence on tea exports, whereas real exchange rates suggest only significant short-run effects. Total tea production serves as a supply constraint and has a significant long-run effect, while one-period lag tea production has a significant short-run impact. This study recommends that policymakers ensure an export quality tea production to acquire a place before on the global export market.

Suggested Citation

  • M. W. A. De Silva & N. S. Cooray, 2022. "The Export Performance of the Sri Lankan Tea: An Econometric Analysis," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(4), pages 224-227, April.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:4:p:224-227
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-4/224-227.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/the-export-performance-of-the-sri-lankan-tea-an-econometric-analysis/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Flavio Vilela Vieira & Ronald MacDonald, 2016. "Exchange rate volatility and exports: a panel data analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(2), pages 203-221, May.
    3. Gaminda Ganewatta & Robert Waschik & Sisira Jayasuriya & Geoff Edwards, 2005. "Moving up the processing ladder in primary product exports: Sri Lanka's “value‐added” tea industry," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 341-350, November.
    4. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    5. Flavio Vilela Vieira & Ronald MacDonald, 2016. "Exchange rate volatility and exports: a panel data analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(2), pages 203-221, May.
    6. Roger Perman, 1991. "Cointegration: An Introduction to the Literature," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 18(3), pages 1-1, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Naveed Jamil & Abdul Rasheed & Adnan Maqbool & Zeeshan Mukhtar, 2023. "Cross-cultural study the macro variables and its impact on exchange rate regimes," Future Business Journal, Springer, vol. 9(1), pages 1-15, December.
    2. Devi Singh & P. Balasubramanian, 2000. "Price-Volume Relationship: Some Evidence from the Indian Stock Market," Vision, , vol. 4(1), pages 17-28, January.
    3. Dahal, Ashmita & Byanjankar, Rohan & Jangam, Bhushan Praveen & Rath, Badri Narayan, 2025. "Reassessing the role of exchange rates in export dynamics: Evidence from a disaggregated industry-level analysis in the case of Nepal," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1752-1759.
    4. Aamir Jamal & G. M. Bhat, 2023. "Disentangling the Nexus Between Exchange Rate Volatility, Exports, and FDI: Empirical Evidence from the Indian Economy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 449-472, September.
    5. Mamoon, Dawood & Nicholas, Howard, 2017. "Financial Liberalisation and Economic Growth: A Preliminary Analysis," MPRA Paper 82976, University Library of Munich, Germany.
    6. Hasanov, Fakhri J. & Javid, Muhammad & Mikayilov, Jeyhun I. & Shabaneh, Rami & Darandary, Abdulelah & Alyamani, Ryan, 2025. "Macroeconomic and sectoral effects of natural gas price: Policy insights from a macroeconometric model," Energy Economics, Elsevier, vol. 143(C).
    7. Siddiqi, Umema, 2021. "Estimating Long-Run Cointegration between Gold Prices and its Determinants," MPRA Paper 103182, University Library of Munich, Germany.
    8. Mustafa Naimoğlu & Serkan Şahin & Sefa Özbek, 2025. "Governance, Corruption, Trade Openness, and Innovation: Key Drivers of Green Growth and Sustainable Development in Türkiye," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 4147-4162, June.
    9. Sushil Kumar Haldar, 2009. "Economic Growth in India Revisited," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 105-126, January.
    10. Ahmed, Khalid, 2015. "The sheer scale of China’s urban renewal and CO2 emissions: Multiple structural breaks, long-run relationship and short-run dynamics," MPRA Paper 71035, University Library of Munich, Germany.
    11. Sohail Abbas & Shazia Kousar & Amber Pervaiz, 2021. "Effects of energy consumption and ecological footprint on CO2 emissions: an empirical evidence from Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13364-13381, September.
    12. Sumera Arshad & Amajd Ali, 2016. "Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(4), pages 193-209, December.
    13. Shabbir Ahmad & Abul Shamsuddin & Malcolm Treadgold, 2012. "A monetary analysis of foreign exchange market disequilibrium in Fiji," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 5(1), pages 66-81.
    14. Ali, Adnan & Faisal, Faisal & Zhakanova Isiksal, Aliya & Maktoumi, Iman Sulaiman Amur AL, 2025. "Do green finance and health expenditures lessen the ecological footprint to ensure sustainable development?," Innovation and Green Development, Elsevier, vol. 4(2).
    15. Mitch Kunce, 2022. "The Tenuous Ecological Divorce and Unemployment Link with Suicide: A U.S. Panel Analysis 1968-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(3), pages 1-2.
    16. Chowdhury, Rosen & Cook, Steve & Watson, Duncan, 2023. "Reconsidering the relationship between health and income in the UK," Social Science & Medicine, Elsevier, vol. 332(C).
    17. Solomon P. Nathaniel & Festus V. Bekun, 2020. "Electricity Consumption, Urbanization and Economic Growth in Nigeria: New Insights from Combined Cointegration amidst Structural Breaks," Research Africa Network Working Papers 20/013, Research Africa Network (RAN).
    18. Moustfa Ismael Khaleel & Ahmed Younis Jabbar & Maha Kalai & Rima Aloulou & Kamel Helali, 2024. "An Applied Study of the Symmetric and Asymmetric Impact of Oil Prices and International Financial Markets on Economic Growth in Iraq," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 66-80, July.
    19. Kwabena Asomanin Anaman, Samuel Ampomah, Joseph Manzvera, 2024. "Determinants of the Share of the Economy Contributed by the Forestry Industry in Ghana from 1975 to 2023," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 5(4), September.
    20. Abdul Rishad & Sanjeev Gupta & Akhil Sharma, 2021. "Official Intervention and Exchange Rate Determination: Evidence from India," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(3), pages 357-379, September.

    More about this item

    Statistics

    Access and download statistics

    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:bcp:journl:v:6:y:2022:i:4:p:224-227. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.