Economic Analysis of the Saudi Imports of Egyptian Orange

Abstract

Saudi Arabia is importing most of orange from international market. Egyptian orange represents an increased level in the Saudi market summing up to around 20% of the total orange imports in early 1990's. The research is to identify factors influencing demand for imports of Egyptian orange in the Saudi market, and to draw some policy suggestions for improving trade potential between the two countries in that commodity. Results indicated that, prices of orange, national income, and population are the major demand determinants for the imports of Egyptian orange in the Saudi market. The forecasting ability of the regression model was tested by (U-theil) and, then the level of Egyptian orange import to Saudi Arabia is expected to range from 53 to 60 thousands tons by the year 1995. Based on economic considerations, and on the possibility of improving economic integration between Saudi Arabia and Egypt, and also on the comparative advantage due to the geographical location, the research is suggesting the expansion of the Saudi imports of orange from Egypt in the future