A Study On Sino-Egyptian Agricultural Economic And Trade Cooperation

Since the founding of the people's Republic of China, Sino-Egyptian relations have developed continuously, as evidenced by a deepening cooperation in political, economic and cultural areas and by Egyptian-Sino diplomatic ties established on May 30,1956, in fact Egypt was the first among Arab and African countries to recognize and establish diplomatic ties with China and to start The development of China's foreign policy towards Africa.This study examines the current status and Prospects of bilateral trade between Egypt and china and Chinese direct investment in the Egyptian Agricultural sector and explores the issues facing Chinese companies which seeking to invest in Egypt. The study concludes with a brief econometric examination of the factors influencing the bilateral trade and the level of Chinese direct investment in the Egyptian agricultural sector.In spite of the efforts of the two countries to promote bilateral cooperation between each other that have been made during the past five decades and the long history of Sino Egyptian relation, bilateral economic cooperation has been less than satisfactory. There are numerous obstacles of bilateral cooperation between the two countries, particularly in the agricultural sector.This study aims to promote the bilateral economic cooperation between the two countries.Chapter 1 explores brief background of Sino-Egyptian economic and trade relations between the two countries, Statement of the Problem, Research objective, Research significance and Organization of the Study. Chapter 2 presents a brief review of related literature and Chapter 3 introduces Egyptian and Chinese Agricultural Development outlook. It begins with An Overview of Natural Features of Egypt and China. The second section briefs The Status of Egyptian and Chinese Agriculture and this comparison allows me to take the next step, which is analyzing the agricultural trade between China and Egypt in Chapter 4, which allows us to understand the trade situation for China and Egypt by using major indices. Chapter 5 presents the situation of Chinese investment in Egypt, especially, in agricultural sector. Chapter 6 provides the impact of trade and investment on Egyptian economy. While chapter 7 presents some suggestions to boost the Sino-Egyptian agricultural cooperation, the last chapter deals with Research findings and recommendations.The objective of this study is to assess the impact of bilateral cooperation on the volume of trade and foreign direct investments. The research assesses the volume of trade relative to what is consistent with comparative advantage of the partner. We also explore the impact of bilateral economic cooperation on the growth rate of Egypt's GDP.According to the findings in this study, there is the potential to increase the bilateral trade and create new Chances for Sino Investment in Egypt in case of agricultural sector, which is restricted by the ability and willingness of both of them to actively pursue the elimination of tariff and non-tariff barriers and to commit to the stated goals. While the two countries actively seeks to deepen the level of cooperation and the ties between both of them by pursuing a Single Market, the relative success will continue to be below the potential output until the basic institutional structure and commitment are established.The proposal of cooperation will be an awakening for the two countries, especially in key sector as the agriculture.China will need to take advantage of the opportunities that now exist with new destination as well known Egypt as gateway of Arab and African countries. This is important to create comparative advantage in the new markets.Given increased bilateral cooperation, Sino Egyptian trade can be expected to continue its increasing trend. While the primary objective of the two countries has been realized, that is, the promotion of consumer behavior and his culture in the two countries, which however needs to concentrate on, and promote, bilateral cooperation activity, particularly trade and investment in agricultural sector.We also establish that Chinese direct investment is a complement to trade in Egypt. As Chinese direct investment flow increase, the volume of trade also increases. However, we find that the levels of exports and investments are below the potential as the two countries are not engaging in sufficient bilateral cooperation Agreement.