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141887

Egypt’s Engagement with the BRICS: Alternative Development Cooperation Initiative "With Reference to Agricultural Trade"

Article

Last updated: 24 Dec 2024

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Abstract

Given the importance of international trade in economic development, this study evaluates the potential impact of Egypt's proposed entry into the bloc of BRICS (Brazil, Russia, India, China, and South Africa) countries. BRICS has great demographics and economic potential and is ranked amongst the world's largest economic blocs in the 21st century. Egypt was invited as a guest of honor at the Xiamen BRICS Summit in 2017. This study uses a regional CGE Model based on GTAP9 to clarify the expected economic impact of Egypt's accession to the BRICS alliance. The study further discusses two main scenarios, the first involving tariff reductions, and the second reductions in non-tariff barriers to trade. The first scenario leads to an increase in GDP and terms of trade for all member States of BRICS and Egypt, excluding Brazil and China whose terms of trade deteriorate. As for the second scenario, there is an improvement in welfare (Real Income) for all BRICS countries and Egypt. In this scenario, Brazil has the most gains. Moreover, all the nations under study achieve an increase in GDP. The study recommends that Egypt joins the BRICS alliance, given the positive effects on the Egyptian economy as well as members of BRICS.

DOI

10.21608/jaess.2020.141887

Keywords

BRICS Countries, Egypt, General Equilibrium Model, Tariff reduction, trade facilitation

Authors

First Name

Y. N .

Last Name

Ahmed

MiddleName

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Affiliation

Faculty of Agriculture, Cairo University,11865, Egypt.

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City

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Orcid

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First Name

Fatma

Last Name

Hefnawy

MiddleName

-

Affiliation

Faculty of Agriculture, Cairo University,11865, Egypt.

Email

fffhefnawy@gmail.com

City

-

Orcid

-

First Name

V.

Last Name

Shaker

MiddleName

-

Affiliation

Faculty of Agriculture, Cairo University,11865, Egypt.

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-

City

-

Orcid

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Volume

11

Article Issue

11

Related Issue

20572

Issue Date

2020-11-01

Receive Date

2020-11-20

Publish Date

2020-11-01

Page Start

825

Page End

832

Print ISSN

2090-3634

Online ISSN

2090-3715

Link

https://jaess.journals.ekb.eg/article_141887.html

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https://jaess.journals.ekb.eg/service?article_code=141887

Order

22

Type

Original Article

Type Code

884

Publication Type

Journal

Publication Title

Journal of Agricultural Economics and Social Sciences

Publication Link

https://jaess.journals.ekb.eg/

MainTitle

Egypt’s Engagement with the BRICS: Alternative Development Cooperation Initiative "With Reference to Agricultural Trade"

Details

Type

Article

Created At

22 Jan 2023