Abstract:

Within the context of AfCFTA, and Egypt’s strategic objective to increase the manufacturing exports in Africa, this paper aims to examine and determine the potentiality of African countries as target destination markets for the Egyptian manufacturing exports by empirical evidence, using the gravity model with panel data series covering a time frame from 2000 till 2020. The paper investigates the current trading nature, compares the actual versus the predicted export values in each African country by sector and determines the main factors affecting the Egyptian exports' flow in Africa, in order to finally conclude precisely the most potential exporting sectors and target African countries. Results show that GDP, population, distance, institutional quality, and common RTA namely COMESA and AfCFTA are all highly significant, and determines the trade flow between Egypt and Africa. The top (10) African countries with the highest potential export values for Egypt are: Nigeria, Sudan, Algeria, Tunisia, Kenya, Ethiopia, Morocco, South Africa, Libya and Congo. While the top (5) potential manufacturing sectors for Egypt in Africa are; Stone and Glass, Plastics and Rubbers, Textiles, Chemicals and Allied Industries, Furniture and Wood Industries.

Keywords:

AfCFTA, Africa, COMESA, Composite Index, Gravity Model, Panel Data.

How to Cite:

Gehad Omran. The Potential Manufacturing Exports of Egypt in African Continent: Empirical Evidence . [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a92/