Egyptian Exporters Under the Lens: Uncovering Competitiveness Challenges

Abstract This paper examines the determinants of export participation among Egyptian manufacturing firms using the 2020/21 Egyptian Industrial Firm Behavior Survey (EIFBS). Against the backdrop of Egypt’s persistent export underperformance and limited upgrading in manufacturing exports, the analysis investigates how firm-level characteristics, managerial and technological practices, international linkages, trade-policy barriers, and broader business-environment constraints shape firms’ likelihood of exporting. Focusing on the extensive export margin, the paper shows that export participation is associated with higher productivity, larger firm size, location in industrial zones, female management, innovation, technological adoption, and stronger management practices. International linkages through foreign direct investment are further associated with higher export propensity. By contrast, business-environment constraints are negatively associated with firms’ participation in international markets. The findings highlight that improving Egypt’s export performance requires not only trade-policy reform but also firm-level capability building and a more enabling domestic business environment.