Elasticities of Food Import Demand in Arab Countries: Implications for Food Security and Policy

Rising population, combined with declining home food production, in Arab nations has resulted in increased food imports that intensifies their dependence on international markets for vital food supplies. These nations face challenges in achieving food security because crude oil price volatility creates difficulties in managing the expenses of imported food products. This research calculates the income and price elasticities of imported food demand to understand consumer behavior changes in response to income and price variations, which helps to explain their impact on regional food security. To our knowledge, this research presents the first analysis of imported food consumption patterns across Arab countries according to their income brackets. This study employs the static Almost Ideal Demand System model to examine food import data spanning from 1961 to 2020. The majority of imported food categories demonstrate inelastic price and income demand, which means that their essential food consumption remains stable despite cost fluctuations. The need for imports makes Arab nations vulnerable to external price changes, which endangers their food security. This research demonstrates why governments must implement policies through subsidies and taxation to reduce price volatility risks while ensuring food stability, which will lead to sustained food security for these nations.