Variable

Description

Expected sign

GDP_i

Egypt’s gross domestic product (constant 2005 US$)

+

GDP_j

Trading partner’s gross domestic product (constant 2005 US$)

+

POP_j

Trading partner’s population

+/−

OPN_j

Trading partner’s openness rate (total trade/real GDP)

+

DIS_ij

Distance between Cairo and trading partner’s capital

−

LANG_ij

Dummy variable takes the value 1 when Egypt and its trading partner speak Arabic language, and the value 0 otherwise

+

RTA_ij

Dummy variable takes the value 1 when Egypt and its trading partner signed regional or free trade agreement, and the value 0 otherwise

+

BORDER_ij

Dummy variable takes the value 1 when Egypt and its trading partner share common border, and the value 0 otherwise

+