Purpose: The purpose of this paper is to provide a detailed analysis of the trends in temperature and rainfall over the period 1967–2016 (50 years) for the Kingdom of Saudi Arabia and estimate the effect of these climatic changes on major crop production.Design/methodology/approach: To set up an empirical association between crop yields and climatic variables, the study uses a fixed effect regression framework. This approach makes it possible to capture the effects of time-invariant indicators and farmers' independent adaptation strategies in reaction to year-to-year variations in precipitation and temperature.Findings: The study observes a significant increase in average temperature by 1.9 degrees Celsius in the last 50 years and the greatest increase is noted in the summer. However, there is no significant change in rainfall. The results indicate that a one-degree Celsius increase in temperature reduces crop yields by 7–25%. The results also indicate that rainfall has a positive effect on all the crops. But, rainfall could not offset much of the adverse effects of temperature.Research limitations/implications: Future research can focus on the analysis of the climate change impact assessment for different regions in the Kingdom of Saudi Arabia and develop a place-based policy.Originality/value: The recent initiative to phase out crop production makes the Kingdom of Saudi Arabia entirely rely on imports. This may have little or no impact presently. However, in the future, it is possible that any global shocks on agriculture due to climate change or geopolitical instability will make the situation worse off. It will threaten both food and nutrition security in the Kingdom of Saudi Arabia. Therefore, it is important to study these in the present context to prepare a road map for future food, water and nutrition security.
7 October 2020 in Environment, Development and Sustainability
Foreign aid and remittances augment the income of economies. The present study examines the relationship between economic growth, poverty, inequality, remittances, and foreign aid in the Middle East and North Africa (MENA) countries using panel data methods from 1991 to 2019. The study focuses on the MENA region due to the rise in labor immigration and significant foreign aid. The empirical findings reveal that remittances, foreign aid, and economic growth play a significant role in bringing down the MENA region’s poverty levels. Besides, a rise in income share accruing to the lowest quintile is observed despite the negative income growth, which indicates that on average, the income increased more rapidly of the poor in comparison to the non-poor households. Thus, the study finds evidence supporting the hypothesis that remittances and foreign aid augment per capita income and income share in the MENA member countries.
This article examines the relationship between caste, land ownership and agricultural productivity in India, utilising data from a large-scale survey of farm households. Access to resources like information, technology, inputs, markets, and support institutions are important for sustainable and inclusive growth of agriculture. The results indicate that socially disadvantaged households (Scheduled Castes and Scheduled Tribes) have lower access to land and also other resources, but they produce more output per unit of land because they are more diversified towards high-value crops that generate more returns and are labour intensive. This calls for policy emphasis on crop diversification in the agricultural sector.
In an attempt to diversify itself away from the dominance of oil on its economy, Saudi Arabia needs to emphasize on the growth of its private sector. Currently, the private sector’s contribution to economic growth is meager as the oil sector dominates the economy. This study attempts to assess the role of financial development towards the growth of the private sector. Assessing this relationship is important, as it is quite probable that the dominant oil sector attracts the financial resources, affecting the private sector adversely. Johansen’s method of cointegration is applied on the data for the period 1985–2018. The private sector’s gross domestic product has a negative relation with the supply of money, positive relation with bank credit to private sector, and no significant relationship with share market capitalization, as shown by the results of the study. In addition, the private sector’s growth has a positive and significant relationship with government expenditure, investment, and trade openness. Hence, the study recommends further strengthening of financial sector services. Besides the current trend on government expenditure, investment and trade openness should continue to enable the private sector to contribute significantly to the economic growth of the country. A previous study on the private sector’s growth and financial variables is exclusively missing, and makes this study unique.