Abstract: | Egypt is part of a classical trade triangle: Egypt supplies human capital to the Arab states, the Arab states supply oil to the Western nations, and the Western nations supply physical capital to Egypt. The major issue raised by the above trade model is whether there exist sufficient supplies of human capital in Egypt such that their export would not aggravate the shortage of physical capital. In this paper the author develops a model that provides a satisfactory basis for decision making related to the export of human capital. Also an attempt is made to implement the model empirically. Notes, tab. |