Determinants of Export Performance of Coconut Industry in Sri Lanka with Special Reference to the Export Competitiveness

Abstract

 An export promotion strategy is crucial for fostering economic growth and development for any country in today’s highly internationalized world. Economic factors and market conditions have traditionally been used to understand the export competitiveness of trading nations. Therefore, the primary aim of this research is to investigate the factors that influence the coconut sector's export performance, with a special emphasis on export competitiveness, and to develop a framework that improves the coconut industry's international competitiveness. The Porter's Diamond model was used as the study's theoretical framework, and a deductive research approach was adopted in conducting this study. The Porter's Diamond model incorporated demand conditions, firm factor conditions, association with related and supporting industries, firm strategy, structure, and rivalry, as well as government assistance. The structured questionnaire was administered to collect primary data for the analysis from 150 coconut exporting firms in Sri Lanka. The main data analysis techniques of this study are descriptive data analysis, correlation, and Kenny and Barron regression. A study shows the coconut industry's present export competitiveness and growth are moving in a positive direction. Furthermore, it shows that associated supporting industries, demand conditions, factor conditions, and government support all play a key role in improving export competitiveness in this sector. Future research might need to investigate the impact of technological breakthroughs and innovations on the competitiveness of the coconut industry and the most effective strategies for stimulating innovation and new technology adoption for greater innovative competitiveness in this sector. The methodology used and the policies derived from this study can be applied to similar research in any country, specifically for South Pacific countries, including Papua New Guinea