An Economic Study of the Determinants of Foreign Demand on the Egyptian Exports of Main Vegetables

Abstract: ________________________________________________________________________________________________
• Egyptian Journal of Agriculture, Agricultural Research Centre (ARC), Ministry of Agriculture and Land Reclamation (MLAR), Vol.(93), No.(4), Cairo, Egypt.
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Agricultural exports are drivers of economic growth. Egypt's average exports represent about 10.5% of the total Egyptian exports during the period (2009-2013). The study therefore attempts to investigate the situation of the Egyptian exports of main vegetables in the key importing markets and investigate the determinants of such exports. The results revealed that the total value of Egypt’s exports of vegetables accounted for about 30.4% of Egypt's total value of agricultural export during the period (2009-2013). However, the value of exports for onions, potatoes and green beans represented about 47.5% of the total value of Egypt’s exports of vegetables during the period (2000-2013). Moreover, the total value of Egypt’s exports of the said vegetables increased at about 19.3%, 13.6% and 21.0% per annum, respectively. The results also showed an increase of the domestic production of onions, potatoes, green beans, tomatoes, artichoke at a growth rate of about 7.4%, 6.5 % and 1.7%, respectively. Besides, the quantity of exports of vegetables under study increased at an average growth rate of about 6.8%, 7.4% and 14.1%, respectively. On the other hand, the results showed that Egypt's exports of onions ranked first in the Saudi market since about 60.9% of the total Saudi imports of onions came from Egypt. Yemen and India were the main competitive with Egypt in this market. However, Egypt ranked third in the Russian market whereas, the Netherlands, China, Tajikistan were the main competitive with Egypt in this market. Besides, Egypt's exports of potatoes to the Russian Federation ranked second after the Netherlands. However, Egypt's exports of potatoes accounted for about 24.8% of Greece’s total imports of potatoes. France, the Netherland and Cyprus were the main competitive with Egypt in this market. Moreover, Kenya acquired about 63% of England’s total imports of green beans, followed by Egypt, which accounted for about 20% of England’s total imports of green beans. However, Egypt and France acquired together about 80% of Italy’s total imports of green beans in terms of quantity.
By investigating the determinants of Egypt’s exports of key vegetables using augmented gravity model during the period (2000-2013), the study revealed the following results:
- An increase by 1% for each of the Gross Domestic Product (GDP) of Egypt, the GDP of the main countries importing Egyptian onions, the difference between per capita gross national income of Egypt and of the studied trading partners, total imports of the main countries importing Egyptian onions, and the population in these countries leads to increasing of Egypt's exports of onions to these countries by about 0.95%, 1.97%, 0.19%, 3.1% and 6.67%, respectively. However, increasing both of the exchange rate of the national currency of the importer and the Egyptian Pound, and the physical distance from Cairo to the capitals of the main importing countries of Egyptian onions by 1% for each leads to a reduction of Egypt's exports of onions to the markets of these countries by about 1.98% and 0.5%, respectively.
- An increase by 1% for each of the GDP of Egypt, the Goss National Income (GNI) per capita of the main countries importing Egyptian potatoes, total imports of the main countries importing Egyptian potatoes, and the population in these countries leads to increasing of Egypt's exports of potatoes to these countries by about 1.53%, 4.31%, 1.57% and 4.75%, respectively. However, increasing both of the exchange rate of the national currency of the importer and the Egyptian Pound, and the physical distance from Cairo to the capitals of the main importing countries of Egyptian potatoes by 1% for each leads to a reduction of Egypt's exports of potatoes to the markets of these countries by about 0.57% and 2.89%, respectively.
- An increase by 1% for each of the GDP of Egypt, the difference between per capita gross national income of Egypt and of the studied trading partners, and the population in these countries leads to increasing of Egypt's exports of green beans to these countries by about 2.3%, 0.49% and 0.54%, respectively. However, increasing both of the exchange rate of the national currency of the importer and the Egyptian Pound, and the physical distance from Cairo to the capitals of the main importing countries of Egyptian green beans by 1% for each leads to a reduction of Egypt's exports of green beans to the markets of these countries by about 1.84% and 0.37, respectively.
Based on these findings, the study concluded some recommendations namely; the importance of opening new exporting markets through a motivating standard specifications for production, building-up detailed database for the attractive markets for Egypt’s exports of vegetables, especially for markets that attract a small percentage of Egypt’s exports of vegetables, and boosting Egypt’s exports of vegetables through encouraging the participation of small farmers in this system.
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URL
Publication year 2015
Pages ص ص 1371 : 1396
Organization Name
City الجيزة
serial title مجلة المصرية للبحوث الزراعية
Web Page
Author(s) from ARC
Agris Categories International trade
AGROVOC
TERMS
Demand. Economic indicators. Exchange rate. Exports. Gross national product. International trade. World markets.
Proposed Agrovoc Gravity Model (نموذج الجاذبية);Geographic Distance (المسافة الجغرافية);
Publication Type Journal