An Analytical study to determinants of external demand for important medicinal and aromatic crops in Egypt using Gravity Model.

  Summary:

Foreign trade seeking to raise rates of economical development, through open new foreign markets for agricultural products, especially in the medicinal and aromatic plants field, Egyptian exports still suffering from fluctuate external demand

For these reasons, the research paper aims mainly at achieving, The present situation to geographical distribution and economic stability to the medicinal and aromatic exports, and determinants of external demand using gravity model.

Qualitative and quantitative methods were utilized to achieve the study purpose. Such as, economic efficiency indicators, gravity model . Secondary data collected from (CAPMS), and FAO, WB.

The main results of the study can be Summarized as follows:

1. The average of foreign trade to medicinal and aromatic has reached about 71 Million dollars during the period 2000-2015.
2. The degree of economic openness has reached about 27.5% on the national level,  and about 0.8% to medicinal and aromatic during this period.
3. It came basil crop at the first exports from medicinal and aromatic, followed by crop fennel, by total exports has adult about 11.12, 5.00 thousand tons per year respectively.
4. Geographical concentration has found in eight countries, with quantity has adult about 41.6%, 60.0% respectively.
5. A positive relationship between the value of exports of basil, and per capita national income, export price, while A negative relationship with distance between the countries, and production.
6. A positive relationship between the value of exports of fennel, and per capita national income, export price, local production, while A negative relationship with distance between the countries.

For policy makers the study suggests the following recommendations.

1. The need to expand the export of medicinal and aromatic crops, with existence of new markets that are stable, to achieve higher export.
2. Compatibility support about creating new mechanisms of action to increase the global competitiveness, and set up a database in order to facilitate marketing services to increase the export capacity of public and private agricultural.
3. Its necessary matching international quality standards to meet the external needs of the market in terms of quality and quantity