The potential of bilateral trade between Egypt And Nile basin countries: A gravity model approach

Abstract

TThis research aims at determining the factors affecting the agricultural bilateral trade flows of Egypt with the Nile Basin countries using the gravity model. Basic and Augmented models have been estimated for both Egyptian agricultural exports and imports. The growth of Egyptian exports to the Nile Basin countries is affected by GDP of both sides. There's a great chance for Egypt to increase the exports to Nile Basin countries by increasing GDP. Distance has a negative impact due to the poor and insufficient transportation infrastructure of Nile Basin countries. Which give more attention to the development of roads and Nile shipping to increase bilateral trade between Egypt and Nile basin countries.

This research aims at determining the factors affecting the agricultural bilateral trade flows of Egypt with the Nile Basin countries using the gravity model. Basic and Augmented models have been estimated for both Egyptian agricultural exports and imports. The growth of Egyptian exports to the Nile Basin countries is affected by GDP of both sides. There's a great chance for Egypt to increase the exports to Nile Basin countries by increasing GDP. Distance has a negative impact due to the poor and insufficient transportation infrastructure of Nile Basin countries. Which give more attention to the development of roads and Nile shipping to increase bilateral trade between Egypt and Nile basin countries.