RESPONSIVENESS OF EXPORT QUANTITY DEMANDED FOR TECH-VALUE ADDED TEA BAGS: A STUDY BASED ON INTERNATIONALIZED TEA TSMEs' OF GALLE AND MATARA DISTRICTS IN SRI LANKA

Abstract

The tech-value added tea exportation is under present circumstances become a relatively confused and complicated operation in Sri Lanka's context especially for tea TSMEs which operate in international market context. This process has been keeping on to be more complex since 2010. This research study was attempted to identify the major factors affecting the demand for technologically value added tea bag exports. With the usage of primary data through a structured questionnaire from a sample of 32 internationalized tea TSMEs plus, with the help of secondary data, a comprehensive qualitative analysis and a quantitative analysis (Regression Analysis) have performed. The analysis revealed that the volume demanded by the foreign countries from the tech-value added tea bags is significantly determined by the price of tech-value added tea bags itself, the degree of tech-value addition of the tea bags and the exchange rate with the respective coefficient estimations of -20.61, 23.01and -21.5. It was suggested that more technologically value added teabags from internationalized tea TSMEs in Sri Lanka is having a higher demand in export markets thus assures more export income.