Red meat demand in Saudi Arabia: Applied Study, 1988-2007

Noura Saud Al-Harbi

doi:10.7176/jesd/10-20-10

Abstract

This study aimed at identifying the determinants of demand for red meat in [he Kingdom of Saudi Arabia during 1988-2007. The rnethodology consisted of examining the data for stationarity and to-integration to avoid spurious regression. Ordinary-least squares methods were then adopted together with the partial adjustment hypothesis to estimate the demand function for red meat in the short and long run. The results indicated that the price of red meat relative to the price of fish and demand for red meat with one period lag are significant determinants of demand for red meat, Indeed, demand for meat in the previous period turned out to be the most important determinant of current demand for red meat. Income and price of red meat relative to the price of chicken were not statistically significant: Finally the long-run elasticity of demand for red meat with respect to all variables turned out to be far higher than their counterpart in the short run. These results arc in line with economic theory and dynamic models. Keywords : Red meat, KSA, dynamic models DOI : 10.7176/JESD/10-20-10 Publication date :October 31 st 2019

Highlights

Saudi Arabia still needs red meat despite producing many other products as part of the kingdom's plan to achieve high levels of self-sufficiency and the country relies on more than 60 imports of red meat
The study assumes that the demand for red meat in Saudi Arabia is influenced by income and the price of red meat relative to the prices of alternative commodities, mainly fish and poultry
The results showed that the price of red meat as a percentage of the price of fish, in addition to the demand for red meat with a period of slowdown and sharpness. it has an effect

Summary

Introduction

Saudi Arabia still needs red meat despite producing many other products as part of the kingdom's plan to achieve high levels of self-sufficiency and the country relies on more than 60 imports of red meat. Demand for red meat imports in the Kingdom of Saudi Arabia has gained importance due to the increasing proportion of imports of this commodity in food imports (Abdali, 2007). This research aims to study the determinants of red meat demand in Saudi Arabia during the period 1988-2007. The study assumes that the demand for red meat in Saudi Arabia is influenced by economic and social factors. The study assumes that the demand for red meat in Saudi Arabia is influenced by income and the price of red meat relative to the prices of alternative commodities, mainly fish and poultry. This study has gained importance in terms of the possibility of being used in the formulation of economic policies that can be followed and aims to bridge the deficit of that commodity and achieve food security for society

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