Effect of Non-Tariff Measures on Sri Lankan Tea Trade: A Bayesian Inference

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dc.contributor.authorRanjan, K.R.H.M.
dc.contributor.authorEdirisinghe, J.C.
dc.date.accessioned2021-01-12T04:36:05Z
dc.date.available2021-01-12T04:36:05Z
dc.date.issued2020
dc.description.abstractNon-tariff measures such as food safety standards on agricultural trade have become an emerging barrier throughout the world. The objective of this paper is to assess the impact of Sanitary and Phytosanitary measures for Sri Lankan tea exports by stipulating Maximum Residual Levels (MRLs) for the pesticide Endosulfan that is mostly used for tea production all over the world. Bayesian analysis was used in this study to estimate the gravity equation for the tea exports from Sri Lanka using a Multilevel Mixed Model. Panel data from 2003 to 2017 for fourteen prime destinations of Ceylon tea were considered for this study. The results show that the MRL of pesticide imposed by importing countries has significantly affected Sri Lanka′s tea exports. One percent decrease in the MRL on Endosulfan can result in a 0.67% (approximately USD 10,138,488.77 in 2017) decrease in Sri Lanka's tea exports and one percent increase in the tariff rate leads to a 0.03% percent decrease in the value of Sri Lankan tea exports. By comparison with the tariff effect, the MRL is associated with a bit higher trade effect for Sri Lankan tea exports. Policy implication such as large variations among countries and increasingly tighter restrictions from developed countries on food safety standards leads to great challenges in exporting food products like tea. Thus, these outcomes recommend that the negative impact of MRLs is found to outweigh the impact of import tariffs, highlighting the greater role that non-tariff measures play on Sri Lankan tea exports. Therefore, there is an urgent need for regulatory policies to uplift Sri Lankan tea exports. Keywords: Bayesian analysis, Gravity model, Maximum residual level, Non-tariff measures, Tea exportsen_US
dc.identifier.isbn9789550481293
dc.identifier.urihttp://www.erepo.lib.uwu.ac.lk/bitstream/handle/123456789/5575/proceeding_oct_08-40.pdf?sequence=1&isAllowed=y
dc.language.isoenen_US
dc.publisherUva Wellassa University of Sri Lankaen_US
dc.relation.ispartofseries;International Research Conference
dc.subjectAgricultureen_US
dc.subjectEconomicen_US
dc.subjectTea Technologyen_US
dc.titleEffect of Non-Tariff Measures on Sri Lankan Tea Trade: A Bayesian Inferenceen_US
dc.title.alternativeInternational Research Conference 2020en_US
dc.typeOtheren_US
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