AN ECONOMIC STUDY OF THE DETERMINANTS OF FOREIGN DEMAND ON THE EGYPTIAN EXPORTS OF MAIN VEGETABLES

Abstract

the study attempts to investigate the determinants of foreign demand on the Egyptian exports of main vegetables using the Augmented Gravity Model. The results showed that Egypt's value of exports for onions, potatoes and green beans represented 47.5% of the total value of Egypt’s exports of vegetables during the period (2009-2013). Moreover, the determinants of foreign demand on such exports were the gross domestic product of Egypt and of the importers; the difference between per capita gross national income of Egypt and of the importers; total imports of such vegetables; the population; the exchange rate for the national currencies of the importers and the Egyptian Pound; and the physical distance from Cairo to the capitals of the importers. The study recommends building-up detailed database for the attractive markets for Egypt’s exports of vegetables, and boosting Egypt’s exports of vegetables through encouraging the participation of small farmers in this system.