Determinants of trade intensity of Egypt with COMESA Countries

Abstract

Egypt has joined to COMESA since May 1998 in order to promote its economic relations with the rest of member states, especially the trade relations, so the aim of the paper is to assess COMESA regional integration efforts and to identify the most effective and important variables that determine trade intensity of Egypt with COMESA countries. To achieve the aim of the paper, estimation of Trade Intensity Index (TII) of Egypt with COMESA was adopted, and econometric methodology (gravity model) was used to estimate the variables that have the major effect on Egypt's trade with COMESA. The paper concludes that there are opportunities to increase Egypt's Trade with COMESA, after applying gravity model paper concludes that Gross Domestic Product and existence of sharing borders are the most effective variables that determine Egypt trade with COMESA, paper also defined the major obstacles of regional integration in COMESA and presented some policy implication.