2014
DOI: 10.4236/jss.2014.211020
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The Factors Affecting Egypt’s Exports: Evidence from the Gravity Model Analysis

Abstract: This paper investigates the factors that affect Egypt's bilateral export flows to its main trading partners. Based on the panel data, the gravity model approach has been used to estimate Egypt's exports through annual data covering the period 2000 to 2013 for 42 main trading partners. The gravity model in its fixed effects panel data explained 84 percent of the fluctuations in Egypt's exports. The results show that Egypt's GDP, importer's GDP, importer's population, regional trade agreements (RTA) and the bord… Show more

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Cited by 27 publications
(25 citation statements)
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References 17 publications
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“…An increase of 1 % of the population in export destination countries is estimated to be able to increase 31,138 tons of the volume of exports to export destination countries, ceteris paribus. These results are in accordance with the prior empirical applications by Zarzoso & Lehmann (2003), and Elshehawy, Shen, & Ahmed, (2014) where export destination countries with large populations will import more than countries with small populations. With this assumption, because the EU is the largest market for Indonesian canned tuna, the effect provided will also be very significant.…”
Section: Lner Ijsupporting
confidence: 91%
“…An increase of 1 % of the population in export destination countries is estimated to be able to increase 31,138 tons of the volume of exports to export destination countries, ceteris paribus. These results are in accordance with the prior empirical applications by Zarzoso & Lehmann (2003), and Elshehawy, Shen, & Ahmed, (2014) where export destination countries with large populations will import more than countries with small populations. With this assumption, because the EU is the largest market for Indonesian canned tuna, the effect provided will also be very significant.…”
Section: Lner Ijsupporting
confidence: 91%
“…As to China GDP, a 1 % increase in GDP will increase up to 3.87 and 3.75% of total export as stated by FE and RE estimations, respectively. This finding confirmed previous reports on investigating the influences of exporter's GDP on trade flows [41][42][43][44][45] and positively correlated with theoretical expectation. These results implied that GDP rise would lead to increase of country's production capacity and generate more export opportunities.…”
Section: Re Regression Analysissupporting
confidence: 91%
“…In his research paper on gravity model analysis of Egypt's trade, El-Sayed in [13] emphasized that the intuitive gravity model is not free of difficulties once more advanced concepts from the trade literature are introduced. Considering the impact on trade between countries i and j of a change in trade costs between countries i and k. An example of such a change might be that countries i and k enter into a preferential trade agreement that lowers tariffs on their respective goods.…”
Section: Limitations Of the Modelmentioning
confidence: 99%