Export diversification and intensive margin of processed food exports in Sri Lanka

Abstract

If a country is to have a high status in Export earning, that country should have a particular export structure. They should continuously improve the exports and find new markets through research. Also they should take steps to increase the quantity of current exports. In this study, we have studied the reduction in exports earning income as a percentage of Gross Domestic Product during the period from 200 1- 2012. Especially we have tried to identify the slow growth in export diversification has contributed to this. We have analyzed Intensive margins using major agricultural export countries of which the annual export earning is more than US$ 5000 from 2001-2012 periods. Further, Harmonized System code 07 product items are analyzed in this study. Main finding of this research is most Sri Lanka is not successful in using product diversification and geographical diversification to diversify its processed foods exports. Also Sri Lanka tries to increase the volume of current processed food exports to increase its export earnings.