An Econometric Analysis of The Factors Affecting Egyptian Extra Long Staple Cotton Demand in Its Main Markets

Ali, Moustafa Mohamed Mohamed; Eleter, Mohamed Kamal; Abd Alqawy, Abd Elkaream Elsayed; Sorror, Ahmed Hassan

doi:10.21608/alexja.2023.245789.1048

An Econometric Analysis of The Factors Affecting Egyptian Extra Long Staple Cotton Demand in Its Main Markets "تحليل اقتصادي قياسي للعوامل المؤثرة في الطلب على الأقطان المصرية طويلة التيلة الممتازة في أسواقها الرئيسية"

Document Type : Original Article

Authors

Agricultural Economics Department, Faculty of Agriculture (Saba Basha), Alexandria University

10.21608/alexja.2023.245789.1048

Abstract

Egyptian cotton is an export crop and is considered one of the finest kinds of cotton in the world. It is distinguished by its fiber and yarn specifications in terms of softness, durability, and homogeneity. However, recently the total production of Egyptian cotton declined from about 222 thousand tons in 2007/2008 to about 36 thousand tons in 2016/2017 and its relative importance globally decreased from about 0.85% to about 0.16% during the study period 2006/2007-2020/2021 This leads to a decrease in Egyptian cotton exports and a decline in its status and competition in foreign markets, and the loss of many traditional and historical markets. The research shows that the relative importance of Egyptian cotton exports to world cotton exports is about 0.72% as it ranges between a maximum of about 120 thousand metric tons in 2007/2008 and a minimum of about 19 thousand metric tons in 2008/2009 with a general annual average of about 63 thousand metric tons dying the study period; Estimating the demand functions for Egyptian extra-long staple cotton exports shows that the most important foreign markets are China, India, Bangladesh, and Turkey. The amount of exports to these markets represents about 41% of the total Egyptian cotton exports. The most effective factors affecting exports to these countries are the exchange rate of the foreign currency, the domestic cotton production of these countries, the customs tariff, and the export price of Egyptian cotton

Keywords