IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i3p84-d1616791.html

The Role of Food Processing in Sustaining Food Security Indicators in the Kingdom of Saudi Arabia

Author

Listed:
  • Fahad Abdelaziz Almohaimeed

    (Department of Finance, College of Business and Economics, Qassim University, Buraydah 52571, Saudi Arabia)

  • Khaled Ahmed Abouelnour

    (Department of Finance, College of Business and Economics, Qassim University, Buraydah 52571, Saudi Arabia)

Abstract

This research aims to explain the role of food processing in improving the sustainability of food security under the framework of ‘Goal 2’ associated with the Sustainable Development Goals (SDGs). The research methodology relied on descriptive and quantitative analysis methods, where the VAR model was used. The key findings reveal that food manufacturing reduces malnutrition rates and increases the level of exports and capital investment, contributing to enhancing the level of sustainability of food security in the Kingdom of Saudi Arabia (KSA). Increasing food production reduces the prevalence of severe food insecurity. Malnutrition in the KSA is not due to a shortage in production of food quantities; rather, it is due to the consumption pattern of the population, and unhealthy food habits and traditions. The food production index does not cause a difference between exports and imports, as there is no dependence of imports and exports on food production. Likewise, the food production index does not cause a change in the value of capital investment in food and beverage factories. The increase in food production and, investment in food processing, and the decrease in the difference between food imports and exports by 10% for one lag period led to a decrease in the proportion of malnourished people in the total population by about 0.25%, 1.7%, and 1.33%, respectively. Moreover, these variables led to a decline in the prevalence of severe food insecurity by 0.3%, 0.66%, and 0.4%, respectively, and led to an increase in the food production index by 1.62. The study recommends that more emphasis should be given to increasing food processing and encourages local and foreign investment in this area to maintain sustainable food security indicators in the KSA.

Suggested Citation

  • Fahad Abdelaziz Almohaimeed & Khaled Ahmed Abouelnour, 2025. "The Role of Food Processing in Sustaining Food Security Indicators in the Kingdom of Saudi Arabia," Economies, MDPI, vol. 13(3), pages 1-25, March.
  • Handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:84-:d:1616791
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/3/84/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7099/13/3/84/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Gustafson & Alona Gutman & Whitney Leet & Adam Drewnowski & Jessica Fanzo & John Ingram, 2016. "Seven Food System Metrics of Sustainable Nutrition Security," Sustainability, MDPI, vol. 8(3), pages 1-17, February.
    2. Ashok, K. R., 2022. "Agriculture and Allied Sectors in Nutritional Security," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 01), March.
    3. Mazhar Mughal & Charlotte Fontan Sers, 2020. "Cereal production, undernourishment, and food insecurity in South Asia," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 524-545, May.
    4. Richard Grabowski, 2016. "Food production and the growth of manufacturing: the case of Tanzania," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(10), pages 1049-1062, October.
    5. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    7. Jiti Gao & Bin Peng & Yayi Yan, 2024. "Estimation, Inference, and Empirical Analysis for Time-Varying VAR Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 42(1), pages 310-321, January.
    8. Bera, Anil K. & Jarque, Carlos M., 1981. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals : Monte Carlo Evidence," Economics Letters, Elsevier, vol. 7(4), pages 313-318.
    9. Gourieroux,Christian, 2000. "Econometrics of Qualitative Dependent Variables," Cambridge Books, Cambridge University Press, number 9780521589857, August.
    10. Mozumdar, Lavlu, 2012. "Agricultural productivity and food security in the developing world," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(01-2).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sugra Humbatova & Afag Huseyn & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Investment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 129-148, March.
    2. Hamdi, Helmi & Sbia, Rashid, 2013. "Dynamic relationships between oil revenues, government spending and economic growth in an oil-dependent economy," Economic Modelling, Elsevier, vol. 35(C), pages 118-125.
    3. Naseem, N.A.M & Tan, Hui-Boon & Hamizah, M.S, 2008. "Exchange Rate Misalignment, Volatility and Import Flows in Malaysia," MPRA Paper 41571, University Library of Munich, Germany.
    4. Maswana, Jean-Claude, 2006. "An empirical investigation around the finance-growth puzzle in China with a particular focus on causality and efficiency considerations," MPRA Paper 3946, University Library of Munich, Germany, revised Apr 2006.
    5. Sayef Bakari, 2019. "Do Agricultural Raw Materials Imports Cause Agricultural Growth? Empirical Analysis from North Africa," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 4(2), pages 65-77.
    6. Chebbi, Houssem Eddine & Lachaal, Lassaad, 2007. "Agricultural Sector and Economic Growth in Tunisia: Evidence from Co-integration and Error Correction Mechanism," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9416, European Association of Agricultural Economists.
    7. Xu, Haifeng & Hamori, Shigeyuki, 2012. "Dynamic linkages of stock prices between the BRICs and the United States: Effects of the 2008–09 financial crisis," Journal of Asian Economics, Elsevier, vol. 23(4), pages 344-352.
    8. Albacete, Rebeca & Espasa, Antoni, 2005. "Forecasting inflation in the euro area using monthly time series models and quarterly econometric models," DES - Working Papers. Statistics and Econometrics. WS ws050401, Universidad Carlos III de Madrid. Departamento de Estadística.
    9. Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.
    10. Vincenzo Cassino & Richard Thornton, 2002. "Do changes in structural factors explain movements in the equilibrium rate of unemployment?," Bank of England Staff Working Paper series 153, Bank of England.
    11. Xiaojie Xu, 2017. "The rolling causal structure between the Chinese stock index and futures," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 31(4), pages 491-509, November.
    12. repec:kap:iaecre:v:17:y:2011:i:2:p:157-168 is not listed on IDEAS
    13. Choi-Meng Leong & Chin-Hong Puah & Shazali Abu Mansor & Evan Lau, 2010. "Testing the Effectiveness of Monetary Policy in Malaysia Using Alternative Monetary Aggregation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(3), pages 321-338, August.
    14. Webber, A., 1999. "Newton's Gravity Law and Import Prices in the Asia Pacific," Economics Working Papers WP99-12, School of Economics, University of Wollongong, NSW, Australia.
    15. Hauser, Shmuel & Kedar-Levy, Haim & Milo, Orit, 2022. "Price discovery during parallel stocks and options preopening: Information distortion and hints of manipulation," Journal of Financial Markets, Elsevier, vol. 59(PA).
    16. Mohammad I. Elian & Khalid M. Kisswani, 2018. "Oil price changes and stock market returns: cointegration evidence from emerging market," Economic Change and Restructuring, Springer, vol. 51(4), pages 317-337, November.
    17. Hande Aksöz Yılmaz, 2020. "The Impact of Foreign Trade on Immigration from Turkey to Germany: ARDL Bounds Test Approach," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(62), pages 123-143, December.
    18. Ram Bhar, 1994. "Yield Curve as a Cointegrated System: Evidence from Australian Treasury Securities," Working Paper Series 35, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    19. Isabel Cortés-Jiménez & Manuel Artís, 2005. "The role of the tourism sector in economic development - Lessons from the Spanish experience," ERSA conference papers ersa05p488, European Regional Science Association.
    20. Roy, Gobinda & Sharma, Swati, 2021. "Measuring the role of factors on website effectiveness using vector autoregressive model," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    21. Siddiqi, Umema, 2021. "Estimating Long-Run Cointegration between Gold Prices and its Determinants," MPRA Paper 103182, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:84-:d:1616791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.