Determinants of Manufacturer's Price of Silver Tips
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Date
2018
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Uva Wellassa University of Sri Lanka
Abstract
Silver tips is a name given to a rare white tea produced in Sri Lanka for export market. Moreover, the price of this product fluctuates frequently. Therefore, this study is an attempt to find the determinants of manufacturer's price of silver tips, in the year 2016. Data were gathered using a structured questionnaire and interviewing the 50 silver tips exporting companies and 60 randomly selected silver tips manufacturing factories within Sri Lanka. Multiple linear regression model was used to determine the factors affecting the manufacturer's price of silver tips and descriptive statistics were used to identify the current situation of manufacturers in terms of silver tips production and exporters in terms of silver tips exportation. Regression analysis resulted that the number of years of factory experience in silver tips manufacturing in the year 2016, the amount of silver tips tea buds purchased for silver tips manufacturing (silver tips crop) in the same year had positive significant effect on the price set by the manufacturer. Moreover, the suitability of the weather condition for the growth of silver tips in the same year had significant negative impact on manufacturer's silver tips price. However, the descriptive analysis showed that most of the manufacturers produce very low amount of silver tips monthly, focusing more on manufacturing black tea and green tea. And also, silver tips tea is highly purchased by the Middle East countries. Finally, this study suggests to provide the knowledge, financial support and any other relevant contribution from supporting services for manufacturers to increase the production volume of silver tips in Sri Lanka. Therefore, it could be expected to increase the manufacturer's price of silver tips and increase the export volume of silver tips that exported to the foreign countries.
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Keywords
Economics, Statistics