Estimation of Export Demand function in Egypt

Exports play an important role in enhancing economic growth and sustaining the development path of emerging countries. In this study we intend to explore the determinants of exports in Egypt, during the period 1982-2021. In this regard, this paper seeks to focus specifically on disaggregating the types of exports into major sub-components, according to data availability. We estimate the determinants of total exports, merchandise esports, non-fuel merchandise exports, and services exports. Main findings confirm with results from previous studies, especially with regards to the positive and significant relationship between exports and the World GDP, the real domestic GDP, real industrial domestic production, the EU partnership agreement with the EU. A negative relationship between the real effective exchange rate and the total exports has been detected, but significant only in the case of service exports. Policy should put more emphasis on scaling up the role of the manufacturing sector, to enhance its potential role in boosting the non-fuel merchandise exports.