Nexus of Macroeconomic Indicators and Meat Consumption in Saudi Arabia: An ARDL Approach

Abstract

The purpose of this study is to assess the relationship between domestic consumption of meat (red and fish) and its macroeconomics determinants in Kingdom of Saudi Arabia during the period 1980-2020. The Autoregressive Distributed Lag model was used to estimate the short-run and long-run between domestic consumption of meat (red and fish) and Gross Domestic Product (GDP), meat price index, consumer price index and population. The model results revealed a negative significant relationship between domestic consumption of red meat and meat price index, and a positive significant relationship with consumer price index in the long run. The results also depicted a positive significant relationship between domestic consumption of red meat and GDP in the short run. Moreover, the model results depicted a positive significant relationship between domestic consumption of fish and GDP. The study recommended improvement of red meat and fish sub-sectors by supporting producers with loans, storage facilities and supporting the use of modern techniques in fishing to ensure sustainable food supply. This study contributes to literature of food security, and it could support the strategic plan of food security in Saudi Arabia. This is helpful in policy formation to ensure sustainable food supply and fill the gap of the domestic production. It provides valuable information regarding macroeconomic indicators affecting domestic consumption of meat (red meat and fish).