Measuring the Impact of some International Variables on Agricultural Trade (Citrus and Grapes) between Egypt and BRICS Using the Gravity Model

Hassan Anwer Elfeshawi, Sherouk Khaled; Talat Fawzy, Shimaa; Elnoby Ahmed Seleem, Thanaa

doi:10.21608/asejaiqjsae.2024.379500

Measuring the Impact of some International Variables on Agricultural Trade (Citrus and Grapes) between Egypt and BRICS Using the Gravity Model

Document Type : Original Article

Authors

¹ PhD student.Department of Agricultural Economics - Faculty of Agriculture - Ain Shams University

² Assistant Professor Department of Agricultural Economics - Faculty of Agriculture - Ain Shams University

³ Professor Department of Agricultural Economics - Faculty of Agriculture - Ain Shams University

10.21608/asejaiqjsae.2024.379500

Abstract

Egypt is interested in foreign trade as it leads to an increase in trade flow between it and many countries in the world in general and the BRICS countries in particular, through the trade agreements concluded by Egypt with the BRICS bloc, and in light of Egypt's abundance and diversity of natural resources and competitive advantages in agricultural production, as economic motives are available for economic integration between Egypt and many Arab and international blocs. The study indicates that there is a disparity in the distribution of labor, capital, and the rest of the productive resources between the various economic blocs, as well as the fluctuation of Egyptian exports of agricultural commodities to the BRICS countries from year to year at high rates in recent years, which led to the necessity of studying the demand for these commodities in the BRICS markets. The research aims to try to improve the position of Egyptian agricultural exports with the BRICS countries, as it was found that there is a direct relationship between the gross domestic product of the importing countries and the import price in dollars per ton, and an inverse relationship between the exchange rate and the quantity of Egyptian exports, which is consistent with economic logic. It was also shown that by increasing the gross domestic product of importing countries by about 1 million dollars, the quantity of Egyptian exports increases by about 300 tons, and by increasing the import price by about 1 dollar/ton, the quantity of exports increases by about 100 tons. It was also shown that increasing the population leads to an increase in Egyptian exports to importing countries, as increasing the population by about 1 million people leads to an increase in the quantity of exports by about 400 tons.

Keywords

Main Subjects