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

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

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    File URL: http://purl.umn.edu/163715
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    Article provided by Niğde University, Faculty of Economics and Administrative Sciences in its journal International Journal of Food and Agricultural Economics (IJFAEC).

    Volume (Year): 2 (1)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:ijfaec:163715
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    Web page: http://www.foodandagriculturejournal.com/
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    1. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
    2. World Bank, 2011. "World Development Indicators 2011," World Bank Publications, The World Bank, number 2315, March.
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