Enhancing Competitive Advantage of Sri Lankan Minor Export Crops

Abstract

The composition of agricultural export crops in Sri Lanka has changed over the last decade. The export shares of large scale traditional plantation crops like tea and rubber have declined, instead the contributions of small scale non-traditional minor export crops such as cinnamon, pepper, and clove have increased. A better understanding of competitive advantage of minor export crops provides the necessary framework to enhance their competitiveness in domestic and global markets. This study aims to describe the competitive structure and dynamics of minor export crops sector in Sri Lanka. In order to compare the performance of export growth with similar countries, the Revealed Competitive Advantage index and global market share analysis are computed using data extracted from the International Trade Centre. The findings reveal that global market share and the RCA value of cinnamon, clove, and pepper in Sri Lanka has gradually declined. The minor export crops occupy an important position in global market only if competitive advantage of such crops in Sri Lanka is enhanced. One important implication arising from this study is the need to identify factors associated with competitive advantage of minor export crops. This study has provided the impetus for future studies to determine the factors and measures of competitive advantage not only for the minor export crops but also for the agricultural sector in general.