Performance of Egyptian Cotton Exports in International Market

The performance of Egyptian cotton exports (ECE) has been examined in the international markets during the period 1990-2006. The study has revealed a high degree of geographic concentration of ECE in India, Italy, the Republic of Korea, and Japan. Together, these markets had imported about 50 per cent of ECE during 1990-2006. The competitive advantage of Egyptian cotton has been found to be dependent on its quality not price. Japan, the Republic of Korea and Italy had provided the most stable markets for ECE during the study period. Linear regression analysis has suggested that one per cent increase in the Egypt-to-USA export price ratio leads to a decrease in ECE by about 27.8 thousand tonnes. This analysis has also shown a positive and significant effect of the World Trade Organization on ECE. The study has revealed the possibility of increasing ECE to the Indian and Korean markets