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A growing number of studies indicate that the export growth of China’s textiles poses serious threats to many developing countries. The purpose of this paper is to empirically measure the extent to which the export growth of Chinese textiles has come at the expense of Egyptian textiles exports in third importing markets.

To measure this effect, an augmented gravity model equation was estimated using annual data covering the period 1994-2012 on Egyptian and Chinese textile exports to traditional importers of Egyptian textiles.

The empirical results suggest that Egyptian textiles are vulnerable to competitive threat posed by China, especially in the EU and US markets. In contact, Egyptian textile exports have moved hand-in-hand with Chinese textile exports to Asian markets. Moreover, the results suggest that the expiration of the Multi-fiber Agreement in 2005 has …