Economic Analysis of the Demand for Egyptian Orange Exports in World Markets

Abstract: ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• Mansoura Journal of Agricultural Economics and Social Sciences, Mansoura University, Vol.(5), No.(1), Mansoura, Egypt, January 2014.
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The research carried out to analysis of the demand for Egyptian orange exports in the world markets using the substitution elastisity and market share models, to learn about the current situation and propose means for development of demand for Egyptian orange exports in the world markets. The study has been dependent on secondary data for the period (2000 - 2011) which issued by various authorities. The studyted that, focused about 78.75 % of the value of Egyptian orange exports in a limited number of countries (Russia - Saudi Arabia - Ukraine - United Kingdom - Netherlands - Amman - Jordan ) . Russia is first place by 29.6 %, Saudi Arabia comes in second with 23.7%, Ukraine occupies third place with 9.02 , the United Kingdom came in fourth place (7.2%) , and the Netherlands come in fifth place by 5.25% . The results of substitution elasticity model for Egyptian orange exports in the markets under study (Saudi Arabia , Ukraine, Russian Federation , and the United Kingdom ) , and the presence of a four-nation competition with Egypt to export fresh oranges to the Russian market namely Argentina , Morocco, South Africa, Spain. The results also showed the severity of allergies between Egyptian orange exports to the Russian market and all the competing countrie. The elastic modulus is greater than one and so the reduction in the export price of fresh oranges to the Russian market by 1% leads to increase the amount of Egyptian exports to the quantities of exports of competitors by more than 1 %. Therefore, it can increase Egyptian orange exports to the Russian market by decreasing the export price. The study also showed that, Lebnan is a single state competition with Egypt to export fresh oranges to Saudi market. The results showed the weakness of sensitivity between Egyptian exports and Lebanon, where the modulus of elasticity was less than one.
The study showed the existence of two countries rivals Egypt in the export of fresh oranges to the Ukrainian market , namely South Africa and Turkey , and the results showed the severity of allergies among Egypt's exports of fresh oranges to the Ukrainian market and competitor countries where the elastic modulus is greater than one and so the reduction in the export price of Egyptian oranges fresh to the Ukrainian market by 1% leads to increase the amount of Egyptian exports compared to South Africa and Turkey by 8.58 % , 1.78 %, respectively . The study also showed that, the existence of two rivals Egypt in the export of fresh oranges to the UK market, namely the Netherlands and South Africa. The results also showed the presence of great sensitivity between Egyptian orange exports toUnited Kingdom market and the Netherlands. The elastic modulus is greater than one. The weakness of sensitivity between Egypt and South Africa exports of fresh oranges to the UK market. The modulus of elasticity was less than one.
The results of the market share model showed that, the price ratio coefficient was negative and consistent with the economic theory of markets under study (Saudi Arabia, Ukrnia, Russian Federation, and the United Kingdom) . The price ratio was elastic in the short term to Ukrania, where the elastic modulus was greater than one and is not elastic to the markets of Saudi Arabia, Russia and the United Kingdom, where the modulus of elasticity was less than one. The results showed a significant market share coefficient delay period of the year at level 0.01 of the United Kingdom and Russia markets, and nonsignificant market share coefficient for Saudi Arabian and Ukranian markets. The results showed, high price elasticity in the long-term for Egyptian orange exports to the United Kingdom , Ukrainian and Russian markets , as the value of the modulus of elasticity was greater than one , that is, to reduce the export price is the appropriate policy to increase the market share of Egyptian orange exports to those markets . The results showed, low price elasticity in the long run for the Egyptian exports of fresh oranges in the Saudian market as the value of the modulus of elasticity is less than one. The study recommended that, the need to attention of the export prices of the competing countries for orange crop exports in both the Russian and Ukrainian and UK markets, and attention to quality and specifications for Egyptian orange exports to the Saudi Arabian market.
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URL
Publication year 2014
Availability location مكتبة كلية الزراعة - جامعة المنصورة - المنصورة، الدقهلية، مصر
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Organization Name
City الدقهلية
serial title مجلة العلوم الاقتصادية والاجتماعية الزراعية
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Author(s) from ARC
Publication Type Journal