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|Title: ||Econometric Analysis of the Import Demand Function for Tea in the Kingdom of Saudi Arabia|
|Authors: ||Safer H. Al-Khatani|
Mostafa M. Mansour
|Issue Date: ||1992 |
|Abstract: ||The main objectives of this paper are : 1) To analyze the most important economic factors which affecting the tea imports. 2) to estimate the import demand function for tea. 3) To use the selected function for deriving some important economic indicators. 4) To use the selected import demand function for forecasting the tea quantities in the short run.
A time series data over the period 1975 – 88 is used in this study. The results show that the most import6ant factors are:
Relative tea prices, Gross Domestic Product, Real – Coffe Price and lagged consumption of tea for one year, these four explanatory variables explained about 79% of the variation in imported tea quantity.
Using the ordinary least square method has shown that the double logarithmic form is the best fitted one than the forms; linear, inverse double logarithmic, semi-logarithmic, exponential, price exponential, square root and Hyperbola. The selection among these forms was made according to the econometric considerations.
Estimated price and income elastities of demand for imported tea are: 0.919, 0. 530, respectively. The marginal and average propensity of tea imports are: 0. 025 and 0. 047 ton respectively.
The forecasting power of the selected import demand function was tested by using theil’s inequality coefficient.
Profit and breakeven Analysis of Dates Packaging Factory at the National Agricultural Development company (Nadec) in Saudi Arabia.
Safer Al – Kahtani, Khalid Al- Hamoudi Esssam Abo Alwafa Agricultural Economics Department. College of Agriculture, King Saud University. Riyadh, Saudi Arabia.
Abstract: Production consumption, and trade balance sheet of dates in the Kingdom during the period of 1974 – 1976 and 1983-1986 indicates a surplus of dates at increasing rate. Dates surplus is estimated to be about 22 thousand tons in the first period and about 57 thousand tons in the second period. In spite of the continuouse increase in production, consumption, and exports along with production supports, investors do no invest in dates industry or even operate the existed dates industries at the optimal level of capacity.
Because of the problems that facing dates packaging factory at NADEC, this study will focus on cost aspects and production volume determination at breakeven volume for NADEC as a case study.
The overall objective of this study is to introduce some indicators of the cost, volum, and profit relationship for dates packaging factory under four scenarios of production. Recent plan which produces at 37 percent of production capacity. Second, thired, and fourth pland produce at 50. 70. 100 percent of production capacity, respectively. The concept of profit analysis utilizing breakeven procedures is applied. Thus. Lotus 1,2,3 spreadsheets of breakeven, target profit, and demand for deferent price levels are used.
Production volume and its value at breakeven point, margin of production and price safety determination, prifit volume ratio, production and price safety determination profit volume ratio, and yearly sales were estimated in order to achieve a certain level of profits at the recent plan and other suggested production plans, another accomplishments is to choose the best pricing alternative of the demand options for the company production. (u). The value of calculated (u) is equal to 0.64. this imlies that the estimated import demand function is a good approximation for reality.
It is expected that the net imports of tea will reach about 23 thousand tons for the year 1993. the estimated function and its derivatives such as elasticity’s, propensity to import and forecasting results will be a useful tools in providing information to policymakers for evaluating economic plans and government policies.|
|Appears in Collections:||College of Foods And Agricultural Science|
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