Abstract

This paper provides a quantitative assessment of the trade policy impacts on agricultural sector growth in Sri Lanka based on the national data from 1960 to 2010. A number of multiple regression models incorporating macro level data were estimated using the Ordinary Least Square (OLS) method to investigate the impact of trade policy reforms on agricultural sector growth in Sri Lanka. The empirical results suggested that trade liberalization had a positive effect on agricultural production growth, and eventually lead to improved agricultural productivity in Sri Lanka. This analysis also concluded that the trade openness, investment, and interest rate were significant factors that were positively related to agricultural production growth.

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