Fstimation of gravity trade models for Egypts exports of orange
2010
Hassanain, H.T. | Esmail, A.M. | Mahdy, E.H. | Ibrahem, A.A.
This study relies on the gravity trade model as a clear model based on a theoretical basis and consistent with recent studies that seek to explain the trade and flow, using the form of three-stage least squares (3SLS) after fulfilling the identification condition, and the selection of those markets is according to the results of some studies which have focused on identifying to the most competitive markets to the exports of the Egyptian market of orange. The model has explained the equation of the Egyptian market that shows a direct relation between the value of Egyptian exports of orange, gross domestic product of Egypt per capita, the quantity of orange exports and price of orange exports. The model also has proved significant relation on amount of exports and the export price, while not proved significant relation on an average of gross domestic product per capita and the quantity of production at the significant level 0.01. The model has explained the equation of the U.S. market and there is a direct relation between the value of U.S. exports of oranges and gross domestic product per capita, quantity of orange exports and price of orange exports, while showing an inverse relation between the value of U.S. exports of oranges and quantity of orange production, and proved significant relation on amount of exports and the export price and the average gross domestic product per capita and the quantity of production at the significant level 0.01.
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