THE DETERMINANTS OF EXTERNAL DEMAND FOR EXPORTS OF EGYPTIAN FROZEN VEGETABLE

Abstract

The problem of research is facing Egyptian exports of frozen vegetables in general, and the mixture of frozen vegetables in particular, with intense competition in foreign markets, which requires studying this problem and proposing appropriate solutions to it. Therefore, the research aimed to study means of developing and increasing agricultural exports of Egyptian frozen vegetables. The research focused on the exports of the Egyptian frozen vegetable mixture, as it was found that it ranked first among the total Egyptian exports of frozen vegetables during the period (2014-2018), where it represented about 70.1% of the total quantities. The research has reached some conclusions, including: The time trend equations for the quantity, value and price of Egyptian exports for both frozen vegetables and frozen vegetable mixtures were estimated during the period (2004-2018). It turned out that the ratio of the increase to the average in both the quantity and value of exports of frozen vegetables mixture is greater than that in the total frozen vegetables. By studying the geographical distribution, the most important importing countries for the Egyptian frozen vegetable mixture were identified during the period (2014-2018), namely Saudi Arabia, America, France. By studying the market share index of the most important importing markets for frozen vegetables mixture shows that Egypt occupies the first position in the list of countries exporting frozen vegetables mixtures in the Saudi market during the period (2010-2012) with an amount of exports estimated at about 4.9 thousand tons and a market share of about 72.2%. By studying The External of individual demand for the Egyptian frozen vegetable mixture in the Saudi market shows that an increase in the price of Egypt by 1% leads to a decrease in Egypt's exports to Saudi Arabia by 0.89%. A 1% decrease in India’s price leads to a decrease in Egypt’s exports by 0.89, meaning that there is a significant impact of price changes and that India is a competitor to Egypt within the Saudi market. The research recommended 1. Study the non-price competitive reasons, as Egypt has a competitive price advantage, yet its market share in the Saudi market is decreasing (it may be due to taste, packaging, export facilities, etc.). 2. The competitive advantage between Egypt and India is decreasing more than the other two competing countries (Spain, Belgium). 3. Focus on studying the reasons for India's increasing competitiveness of Egyptian exports. 4. There is an effect of price competition, especially with Mexican and Chinese exports, and it is recommended that this price competitive advantage be improved in favor of Egypt. 5. Italy is the largest competitor in the French market (it has a significant price impact on Egypt's exports, followed by Spain).

Keywords

• individual demand
• trade indicators
• market share
• price competition
• price elasticities
• apparent comparative advantage