The Effect of Export Promotion Programs on Egypt’s Textiles, Clothing and Home Textiles Export Performance

Proceedings of The 3rd International Conference on Advanced Research in Management, Business and Finance

Year: 2021

DOI: https://www.doi.org/10.33422/3rd.icmbf.2021.07.470

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The Effect of Export Promotion Programs on Egypt’s Textiles, Clothing and Home Textiles Export Performance

Mona El Garf, Sayed Moawad Ahmed

 

ABSTRACT: 

Purpose– Due to the competition in international markets, governments may intervene to raise the competitiveness of the exports through adopting certain measures, such as export promotion programs (commonly known as burdens refund programs).  The purpose of this research paper is to test the effect of burdens refund export promotion program provided by the Egyptian government to the exporting companies of textiles, clothing and home textiles on their export performance through the period 2007-2019.

Design/methodology/approach- The panel data technique applied to test the effect of export promotion programs on export performance of textiles, clothing and home textiles. Effect of both global demand of textiles, clothing and home textiles and Egyptian pound exchange rate were tested as well. Data collected from export promotion fund, Central Bank of Egypt (CBE), and International Trade Center based on UN Comtrade.

Findings– The paper concluded that the burdens refund export promotion programs have a positive effect on the export performance of the textiles, clothing and home textiles in Egypt. Furthermore, it concluded that global demand has a positive impact and unexpectedly, depreciated exchange rate has a negative impact of the export performance of the three sectors.

Originality/ value– Due to the continued need to work on export performance, this paper develops and tests a holistic conceptual framework on export promotion programs submitted to textiles, clothing and home textiles exporters in Egypt and their effect on the export performance of these sectors. Furthermore, it provides background on some previous studies that may enable the policy-makers to learn from the best practices on how to design export promotion programs to raise competitiveness and promote exports of textile, clotting and home textiles in Egypt.

Keywords: Textiles, Strategic Trade Policy, Export Promotion Programs, Export Performance.