Estimation the Almost Ideal Demand System for Egyptian Onion Exports in the Most Important Foreign Markets

Document Type : Original Article

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Abstract

Agricultural exports are one of the most promising sources for increasing the state’s foreign exchange earnings. Therefore, these exports are receiving increased attention by decision-makers. That the onion crop is one of the most important vegetable crops, which occupies a high position in the outcome of Egyptian agricultural exports, but the statistics indicated a fluctuation and a small percentage of exports from it to Production. The research problem represented: the instability of Egyptian onion exports and the low rates of growth compared to the local production of it, which requires studying the determinants of onion demand and its competitiveness in the market for the development of Egyptian exports. The research aims to: Identify the competitive situation of the study crops in the most important foreign markets for it, by estimating the demand function for exports of these crops to determine the most important factors affecting it. the most important results: The results of the optimal demand model indicate that the price elasticity of demand for the Egyptian onion crop in the Saudi market indicates that a change in its price by about 1% leads to a decrease in the quantity demanded on it by about 0.940% in the Saudi market, and that the spending elasticity means that the total real spending on onions in the market increases. Saudi Arabia, by about 1%, leads to an increase in spending on Egyptian onions by about 1.287. The elasticity demand of price for the Egyptian onion crop in the Russian market indicates that a change in its price by about 1% leads to a decrease in the quantity demanded on it by about 1.005% in the Russian market. An increase in spending on Egyptian onions by about 1.021%. The price elasticity of demand for the Egyptian onion crop in the Dutch market indicates that a change in its price by about 1% leads to a decrease in the quantity demanded on it by about 0.599% in the Dutch market, that elasticity of spending is that an increase in the total real spending on onions in the Dutch market by about 1% leads to An increase in spending on Egyptian onions by about 1.411%.

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