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Potentials Of Egypt Agricultural Bilateral Trade With The Arab Countries: Gravity Model Evidence

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  • Said, Mohamed Ahmed
  • Shelaby, Ayman Abd-Alkawy

Abstract

The paper aims at evaluating the determinants of agricultural bilateral trade flows of Egypt with the Arab countries. A gravity model has been used in addition to some other indicators such as relative importance of intra-trade, tendency to export and import, and degree of openness. Two models have been estimated; one is for the Egyptian agricultural exports and the other is for the imports. The biggest Arab partners who represent the majority of the Egyptian bilateral trade are; KSA, Syria, Libya, Sudan, Jordan, UAE, Kuwait, Lebanon, and Iraq. The main features of the gravity model have been introduced well. The gross domestic product has a positive impact on both agricultural exports and imports, and the distance between Egypt and the target countries has a negative impact. Both factors are statistically significant. It's recommended that Egypt encourage foreign investment within the agriculture sector and maintain the road transportation with Arab countries.

Suggested Citation

  • Said, Mohamed Ahmed & Shelaby, Ayman Abd-Alkawy, 2014. "Potentials Of Egypt Agricultural Bilateral Trade With The Arab Countries: Gravity Model Evidence," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(1), pages 1-12, January.
    • Handle: RePEc:ags:ijfaec:163715
    DOI: 10.22004/ag.econ.163715
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Ito, Takatoshi & Krueger, Anne O. (ed.), 2007. "Regionalism versus Multilateral Trade Arrangements," National Bureau of Economic Research Books, University of Chicago Press, number 9780226387031, November.
    3. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315, December.
    4. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373, December.
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    Cited by:

    1. Sayef Bakari & Sofien Tiba, 2022. "Agricultural Exports, Agricultural Imports And Economic Growth In China," Journal of Smart Economic Growth, , vol. 7(3), pages 35-61, September.
    2. Yeboah, Osei-Agyeman & Shaik, Saleem & Ofosu, Stephen A., 2023. "Computing the Cost of U.S. Trade in GE Processed Animal Products: A Gravity Modeling Approach," 2023 Annual Meeting, July 23-25, Washington D.C. 335754, Agricultural and Applied Economics Association.
    3. Yeboah, Osei-Agyeman & Shaik, Saleem & Legesse, Bafikadu & Faulkner, Paula & Aku, Helga, 2017. "Bilateral trade flows between U.S TPP countries: Country Pair Analysis," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252803, Southern Agricultural Economics Association.

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