Working Paper: Trade between Egypt, Sudan and Ethiopia: Prospects and Challenges for Trilateral Trade Integration

Source: Economic Research Forum
Author(s): Ebaidalla Mahjoub Ebaidalla

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Egypt, Sudan and Ethiopia possess potential natural and human resources, which can entail successful trade integration between the three countries. This paper investigates the performance of trilateral trade between Egypt, Sudan and Ethiopia. The study also analyzes the prospects and challenges for trade expansion between these countries. The study used the gravity model beside diversification and product complementarity indices to identify the pattern and structure of trade between the three countries. The analysis revealed that Egypt is the most diversified economy, which can lead trade in the region. Moreover, the paper indicated that there are some challenges facing the implementation of any trade arrangements between these countries, including: export concentration, poor infrastructure and political instability. Finally, the paper concludes with some recommendations to facilitate free trade between the three countries…

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