SRI LANKAN JOURNAL OF AGRICULTURAL ECONOMICS

Volumes 20 Number 1. 2019
Author - H. B. Kotagama , H. Boughanmi
The drastic drop in fuel prices and the resulting fiscal constraints have compelled oil exporting countries to phase down fuel subsidies. The government of Oman raised gas prices for industrial users by 100% in 2015 with 3% annual increase, and in early 2016 increased oil fuel prices by 33% with possibility of monthly adjustments, in future. The increase in the fuel prices resulted to an increase in domestic food prices too. The phasing down of fuel subsidies would influence poverty and household food security in Oman. In this context, the objective of the study is to quantitatively analyze the impact and sensitivity of food and fuel price changes on incidence of poverty in Oman. This study uses a simulation model developed by the World Bank that estimates the impact of increase in food and fuel prices on poverty incidence and the required fiscal allocation to neutralize the poverty incidence. The results indicate that poverty incidence is responsive to fuel price changes in Oman. It is estimated that increase of fuel prices by 33% increases poverty incidence by 1% from current baseline of 12.78%. The financial transfer that is required to neutralize poverty incidence due to increase of fuel prices by 33% is substantially lower than the savings made by phasing down fuel subsidies. The government could use the existing mechanism and institutions of social security provisions to target and provide financial transfers to poor household that would be adversely affected by phasing down of fuel subsidies.
H. B. Kotagama , H. Boughanmi
Author - R. A. P. I. S. Dharmadasa , J. Weerahewa, P. A. Samarathunga
Using a nationally representative data set, we examine whether the individuals’ bargaining power within households affects allocation of remittances in estate households in Sri Lanka. Two separate fractional logit models were estimated within the Engle’s Curve framework for male headed and female headed households to examine the intra household bargaining on decision making with respect to resource allocation. The results suggest that while female headed households allocate international remittances on food, male headed households allocate such on housing. The results further reveal that internal remittances contribute more for food, communication, entertainment, non-durables, transport and ad hoc purchases of male headed households. The influence of remitters on allocation for the food expenditure is relatively small but it is high for education, housing, health, consumer goods, durables and expenditure for ad hoc purchases, entertainment and transport. Overall, the study concludes that remitter has a greater say over the allocation of household resources over expenditures other than food and housing whereas household head play a significant role in allocating remittances on food and housing.
R. A. P. I. S. Dharmadasa , J. Weerahewa, P. A. Samarathunga
Authors - D. W. L. U. De Silva , N. R. Abeynayake, L. F. D. Z. Gunathilaka, K. P. G. L. Sandaruwan
This paper examines the determinants of the seafood trade and their nature of relationship in Sri Lankan context. The analysis was done using a comprehensive panel data set covering 107 importing countries for time period 2001-2017. The economic sizes of the importer and Sri Lanka have a positive influence on seafood export values while the physical distance, tariff rate, non-tariff measures, and population of importer have a negative impact. There was no long-run association among those variables but seafood exports have shown a short-run causality with GDP of importing countries, tariff and non-tariff measures.
D. W. L. U. De Silva , N. R. Abeynayake, L. F. D. Z. Gunathilaka, K. P. G. L. Sandaruwan
Authors - Uthpala Jaysinghe , Renée Fry-McKibbin
This paper attempts to identify the causal relationship between rising of real effective exchange rate and the export performance in Sri Lanka for the period of 2000 to 2016. Study employed a Gravity model approach using a panel data set of 174 trading partner countries. The study finds that there is no significant impact of rising of exchange rate on export performance during the period of study. It is also found that GDP, distance, FDI, country being landlocked, global financial crisis and ending of civil war have a significant impact on export performance of the country.
Uthpala Jaysinghe , Renée Fry-McKibbin