Merchandise Export Demand Function For Egypt: A Panel Data Analysis

This study empirically estimates the critical parameters of merchandise export demand function for Egypt by using annual time series-cross section data (1990-2008) and by applying fixed effects model. The empirical results confirm that there exists a significant relationship among the real value of merchandise exports for Egypt and trade partner's real income, relative export price, and trade partner's real exchange rates. Our estimation results show that all variables have a significant relation and its theoretical expected sign (positive for both real income and real exchange rate but negative for relative price), and the elasticities of real income, relative price and real exchange rate are smaller than unity.