Firms that want to start exporting have to be able to innovate and upgrade their use of technology in the face of fierce competition in international markets. As this column explains, highly skilled production and non-production workers are essential. In other words, engaging in international trade creates the need for a bias towards skills.
Despite significant reforms taken by the Egyptian government to liberalise markets and enhance the business environment, political factors continue to affect firms’ capacity to export. This column reports research on the impact of the overall investment climate on Egyptian exports in the manufacturing sector.