Egypt’s Export Performance: The Role of Exchange Rate Regimes and Investment in Product Diversification.
November 2024 2024-12-11 15:31Authors
Reham Rizk
John Owusu-Afriyie
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Egypt’s Export Performance: The Role of Exchange Rate Regimes and Investment in Product Diversification.
Abstract
| Enhancing export performance is one of the strategies to ensure trade surplus, increase aggregate demand and hence, boost growth. However, over the years, Egypt’s export performance has remained stunted. Thus, this study examines whether product diversification and Exchange Rate (ER) regimes can be used to stimulate Egypt’s export performance. The paper employs both graphical and econometric approaches to analyze an Export Gravity Model using a balanced panel data on Egypt and top-25 importing countries for Egypt’s exports for the period,1993 to 2022. Using a Pooled OLS regression, the study finds that Product Diversification Index (PDI) of Egypt positively and significantly influences export performance, whilst Exchange Rate (ER) regimes do not but has the potential to boost exports. Thus, the study recommends continuous investment in product innovation and diversification as a way of boosting export performance. |
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