Effect of export promotional expenditure on value of exports in Gem and Jewellery Industry in Sri Lanka Dollar

Introduction Immemorial Sri Lanka has had a sparkling reputation for highly treasured gems Sri Lanka’s mineral rich soils - never ending supply of high quality precious and semi precious gem stones eg:-Sapphires, Star Sapphire, Rubies, Star Rubies, Alexandrites, Cat’s eyes, Garnets, Zircons, Tourmalines and Spinels.

Introduction contd.. Census report precious and semi precious stones conquered 7% of Sri Lankan exports Global competitiveness - 81 th from 122 countries Orders executed by about 900 private companies registered with the National Gem and Jewellery Authority (NGJA) Development Rs. 19, 437 Mn Rs. 52, 764 Mn

Facets –held annually in Colombo since 1991 –Exhibition of Gem & Jewellery Not much studied Introduction contd..

Problem The effectiveness of the export promotional expenditure on gem & jewellery in export market is questionable

Objective To investigate the effect of expenditure of export promotion programmes on Gem & Jewellery Industry Sri Lanka in terms of –Global market share –Export earnings –Market diversification

Literature Review Sporadic & active exporters gain most from export promotion programmes (Francis & collins- Dodd, 2004) Little impact in the short term for more experienced international export firms

Literature Review contd.. Export performance measurement –Economic measures- sales, profit, market share –Non- economic measures- # countries exported to, products and miscellaneous items –Generic subjective measures- export success, achievement of export objectives, satisfaction with specific export performance

Literature Review contd.. Export performance measures (Thirkell & Dau,1998) –Export market share –Export profitability –Market diversification –Customer satisfaction

Literature Review contd.. Export performance determined through, –External factors- Environment –Internal factors Competencies –Technology –Export/ market knowledge –Quality Marketing orientation –Planning for customer satisfaction –Management control –Communication cross- functionalmgt perception towards:risk & profit

Literature Review contd.. Firm characteristics –Firm size –Mgt perception towards: competition, delivery & service, distribution Strategy –Product mix –Promotion –Pricing –staffing

Conceptual Framework Global market share -sales of SL -international demand Export earnings Market diversification Expenditure of export promotion programmes

Hypotheses Hypothesis 1 –There is a positive relationship between Export promotion expenditure and global market share Hypothesis 2 –There is a positive relationship between Export promotion expenditure and Export earnings in Gem & Jewellery exporters

Hypotheses contd.. Hypothesis 3 –There is a positive relationship between export promotion budget and Market diversification in gem and jewellery industry in Sri Lanka.

Methodology Time frame one year Population –All years of gem and jewellery exporting Sampling method –Recent 30 years Sample size –30 years Sampling frame –Census reports –Central Bank reports –Gem and Jewellery Authority –Export Development Board

Methodology contd.. Measurements –Dependent variables Export market share –Total gem and jewellery export of SL /International demand for gem and jewellery Export earnings - $ Market diversification –Market segments- # of countries –Independent variable Export promotion budget- $

Methodology contd.. Analyzing –Linear Regression

References http:// /pagesPdf/chapter9.htm http:// 8/pagesPdf/chapter9.htm Census Report 2007 June Francis and Colleen Collins- Dodd (2004) Impact of export promotion programs on firm competencies, strategies and performance. The case of Canadian high- technology SMEs. International Marketing Review.emarald Group Publishing Ltd.. Vol. 21 4/5, pp. Thirkell, Peter C. & Dau, Ramadhani(1998) Export performance: success determinants for New Zealand manufacturing exporters. Europea Journal of Marketing. MCB University Press.Vol. 32 9/ pp

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