| Author(s) | Abdulla A. Al - Kheraiji |
| Affiliation | Department of Extension and Agricultural Economics, College of Agriculture King Saud University, Qassim Branch, P. O. Box 1482, Buraaidah, Saudi Arabia |
| Title | Demand for Rice in Saudi Arabia: Weak Separability and Structural Change |
| Source | Journal of King Saud University. Agricultural Sciences. Volume 16, No 1. (2004/1424) |
| Abstract | The hypothesis of structural change in Saudi Arabia rice demand is tested and evaluated in a five-rice types almost ideal demand system with parameters following gradual switching regression model. Result derived from time-varying parameterization of this model provides strong evidence of very gradual structural change in Saudi Arabia rice demand. The structural change was accompanied with significant change in parameters of the model and in the resulting elasticities. The structural change took 10 years (1981-1990) to be completed and was biased in favor of Indian and Rest of the world at the expense of U.S.A and ROA rice types. It is concluded that habit persistence does not explain any changes in Saudi Arabia rice consumption patterns. Estimated elasticities show that U.S.A, PAK, and ROW rice types are portrayed as a luxury good while IND and ROA are characterized as necessities. |
