| This dissertation focuses on two research themes related to agricultural export sector of Egypt. The first theme addresses the determinants of demand for Egyptian agricultural exports to the world. The second theme explores whether there are potential opportunities for Egyptian agricultural products in Chinese market or no. Literature review showed that nevertheless the major reforms have already been done and those under way, Egyptian agricultural exports is still a much-debated issue, while Egypt has been suffering from a large agricultural trade deficit; rose from US$ 2.2 billion in 1994 to about US$ 6.3 billion in 2008. Moreover, the performance of Egyptian agricultural exports has been characterizing by sharp fluctuations and instability in international markets. Besides, agricultural exports of Egypt are also characterized by a high degree of geographic and commodity concentration which in turn leaves Egypt vulnerable to changes in demand for exports and in the case of rapid changes in the political or economic situations of their key trade partners.On the other side, in spite of the importance of China in the global economy and given that its demand for agricultural imports is expected to continue, driven by the effects of fast economic growth, higher incomes and rapid urbanization, and thus it could present a proper mechanism and a sound alternative for achieving the expanding and diversifying the map of Egyptian agricultural exports, there has been no research conducted to analyze the bilateral trade between the two counterparts, or to explore the potential opportunities for Egypt's agricultural products in the Chinese market.Consequently, the overall objective of this study is to analyze the performance and competitiveness Egyptian agricultural exports in the world market and to identify the most relevant factors that have shaped their composition for the period 1994-2008. Besides, the study also aimed at developing an in-depth understanding of the pattern of trade between the China and Egypt and the driving forces behind such dynamics in order to best capture the opportunities presented by the Chinese market to Egyptian agricultural products which will also help adjust the deficit in trade balance and evolve the overall volume of bilateral trade between the two countries.Results indicated that a one percent increase in Egypt's GDP results in roughly a 5.42 percent increase in Egypt's agricultural export flows. In contrast, the increase in Egypt's GDP per capita causes exports to decrease, which is attributed to the fact that an increase in economic growth, besides the increasing population, raises the demand per capita for all normal goods. Hence, domestic growth per se leads to reduced exports. Importer's GDP per capita was found to have no significant impact on exports which suggests that Egyptian agricultural export pattern follow a GDP pattern, concentrating on the production and export of quantity-based products and depending on overall market size, rather than a per capita GDP pattern centering on the export of quality-based high value added products which are sensitive to the levels of income. The exchange volatility has a significant positive coefficient, indicating that depreciation in Egyptian Pound against the currencies of its partners stimulates agricultural exports. Countries where Arabic is the official language are associated with an increase Egyptian exports of agricultural products. The fact that a country is a member of RTA with Egypt does not seem to determine the export volume which implies that trade gains from the regional trade agreements have been minimal.A case study framework was conducted with export managers of twenty nine agricultural export companies in Egypt with regard to their experiences and problems encountered in the export business. Based on the findings, the study identified a number of challenges that hinder agricultural exports in Egypt, which were categorized in two main groups; internal and external problems. A number of 24 problems were identified as the most influencing internal challenges including; legislation and regulation challenges, institutional and information framework constrains, problems of domestic production, and infrastructure constrains. On the external side, the study identified 16 problems as the most influencing ones including; problems associated with the fierce competition in the foreign markets; problems associated with the importing market regulations; and problems associated with the international standards and trade policy.In respect to Egyptian agricultural exports to China, results indicated that China's exports to Egypt have been far greater than its imports from Egypt, resulting in a large trade surplus in favor of China. Yet the volume of trade between the two countries is still small and the scope of commodities traded is relatively extensive. Results clearly showed that there are few areas where there is an overlap in the two countries'comparative advantage. Hence, China does not compete with Egypt in most of areas where Egypt has comparative advantage. This result indicates that there are opportunities for selected Egyptian commodities in the Chinese market. The actual and predicted agricultural export flows from Egypt into China indicated that the actual value of Egypt's agricultural exports to China fell far short of our expectations recording missing exports of averaging 69 percent in recent years which indicates. The policy implication is that Egyptian government should take correct measures to increase export volume of agricultural commodities to China, as full potential of export expansion is yet to be exploited. Thus, Egypt is yet to tap more opportunities to export more to China. Finally, the existing practice and research findings demonstrate that FTAs have boosted bilateral trade between partners. Egypt and China should explore the possibility of signing a free trade agreement sooner. In order to provide clearer picture on the challenges and opportunities provided by the Chinese market, the study conducted to two focus groups with a sample of Egyptian exporters to/in China. Results showed the unease companies had when entering Chinese market, which include a number of market access obstacles that hinder, for instance; tariff-rate quotas, regulatory barriers, and sanitary and phyto-sanitary measures. In addition, Chinese regulations are changeable and new procedures can be implemented without notifying traders in advance or explaining its reasons, resulting in substantial commercial uncertainty for Egyptian companies. China's size also makes it difficult to make generalizations about the entire national market and cultural and linguistic barriers make gathering information more difficult. The high transportation cost influences the final price of the Egyptian agricultural commodities which becomes higher, in many times, than other competitors'prices, especially from east and south Asia. Finally, results affirmed the opportunities to improve the access of Egyptian agricultural commodities to China provided that interventions and measures are taken to resolve the existing challenges, especially under the scenario that the drop in China's self-sufficiency is projected and generating ever larger opportunities for international exports to China. As a country with a comparative advantage in many agricultural commodities, Egypt has much to offer China in terms of exports of agricultural productsThe discussion of the findings of the quantitative and qualitative analyses in this study has led to a conclusion that for Egypt to become internationally competitive, and to stimulate the development of the agricultural export sector, it requires a comprehensive approach through the creation of a strategic framework for export promotion that addresses the challenges and impediments to export growth and competitiveness in the right manner and comprehensively offering suitable solutions. Specifically, the study proposed a roadmap for the increase in production of the agricultural export sector so as to be both a generator of economic development and to improve the country's competitiveness. To this end, a set of interventional programs were presented and structured in three levels of implementation; macro, micro, and institutions levels. Macro level activities included; enhancing agricultural export financing, insurance, guarantees, and incentives; building a comprehensive database for agricultural statistics and export intelligence; establishing & maintaining quality assurance programs; enhancing transportation and logistics services; encouraging import regulation reforms for agro-inputs; modernizing the legal framework & reduction of administrative barriers; and adoption of a program for certification in good agricultural practices. At the micro level activities, the study recommended programs for; improving marketing & promotional efforts of agricultural products; developing packaging & labeling services; upgrading training, & extension services; and program for promoting contract farming. Lastly, at the institutional level the study recommended the implementation a program for empowering functions & networking of export associations, and another one for improving coordination among governmental concerned departments of agricultural export.
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