Almost Ideal Demand System (AIDS) to Estimate The Price Effect of Wheat Imports from The Competitive Countries Exporting Wheat to Egypt

Moussa, Mourad; Salem, Fathia; Atallah, Elsayed; Abd El-fatah, Rabab

doi:10.21608/jsas.2019.12030.1143

Almost Ideal Demand System (AIDS) to Estimate The Price Effect of Wheat Imports from The Competitive Countries Exporting Wheat to Egypt

Document Type : Original Article

Authors

¹ Agricultural Economics Department, Faculty of Ariculture, Kafrelsheikh University.

² Agricultural Economics Department, Faculty of Ariculture, Kafrelsheikh University

³ Faculty of Agriculture, Damiatta University.

10.21608/jsas.2019.12030.1143

Abstract

Egypt is considered as the first country in the world which import wheat and thus put a high pressure on the balance of payment. This required to study the major wheat markets competing to export wheat to Egypt in order to achieve the best price with the best quality.
For these reasons, the main target of the study is to adopt an efficient strategy to determine factors affecting the Egyptian demand of wheat imports from the competitive countries exporting wheat to Egypt. This will help in reducing cost of imports, and thus, enhancing the balance of payment. To achieve the study purpose secondary data was collected from (CAMPS), as well as (FAO). The statistical analysis relied mainly on the step-wise procedure to estimate Almost Ideal Demand System (AIDS) to test the export price of the competitive countries on the Egyptian demand of wheat. The main results of the study showed that the main competitive exporting countries of wheat to the world are Russia, USA and Ukraine, but the main competitive importing countries to Egypt are Russia, Ukraine, Romania, France, Australia, USA, Boland, and Argentine. Thus for policy makers the study recommends the importance of adopting an importing policy to import wheat at a lowest price and a best quality from the competitive countries export wheat to Egypt.

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