Vegetable production in Saudi Arabia: Protection coefficients and relative efficiency

Abstract

This research investigated the protection coefficients and relative efficiency of winter vegetables by using the domestic and tradable inputs of some selected winter vegetables in Saudi Arabia to explore the economic incentives of local vegetables. The data was analyzed using gross margin and Policy Analysis Matrix (PAM) approach. The outcomes of this research revealed that the eggplant constitutes a highest gross margin as compared to other local vegetables. Moreover, the private price of potato output is more than their parity price. The producers of tomato crops are nearly protected. However, during the study period, the producers of tomatoes, zucchini, and ladyfingers were subsidized and largely competitive on their exports. Furthermore, the study indicated that the government supported eggplant and cucumber vegetables. The research suggests for establishment of international trade collaboration to reduce fees and removal of policy distortions to rise the incentives for vegetable producers.

Keywords

• PAM
• Winter Vegetables
• Cost Benefit Ratios