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China’s Exports to Egypt: Does it Enhance or Inhibit Employment in the Egyptian Industry Sector?

이집트 Nashwa Mostafa Ali Mohamed Economics and Foreign Trade department- Helwan University-Egypt, Economics Department- King Saud University-KSA Assistant Professor 2015/07/20

I. Introduction

China is one of the most important exporters for Egyptian market, where China fell in the first rank internationally in terms of the total volume of imports into Egypt in year 2013 (UNCTAD). On the other hand, Egypt is considered, for China, an important market for the disposal of its surplus production in the Arab region. Egypt was in the third rank among the most important Arab importers from China, after the United Arab Emirates and Saudi Arabia, which receives 9.3% of the total China’s exports. (Arab Association for Industrial Development and Mining, March 2012). demand for labor.
There are two probable effects to the large share of China’s exports on the Egyptian market. The first one, it is competing domestic industries, where the China’s exports have a high competitive advantage of low price, which could adversely affect the industrial output, and the demand for labor. The second one, it is complementary to the domestic industries, where imported primary and intermediate goods used as inputs for the domestic production, thus widen the investments projects that, in turn, need to employ more labor. Therefore, the reduction of these imports leads to drop in production and employment level.
Upon the above, this paper aims to answer the following questions: - What is the impact of China’s exports on employment level in the industry sector in Egypt? The answer on this question may benefit as a guide to decision-makers and economic policies in recognizing the effects of the China’s exports on the Egyptian economy, to avoid any adverse effects as a mean of promoting the value of exports to the Egypt.

 

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