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

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^st2019