The Asymmetric Effects of Global Food Prices on Domestic Prices in Saudi Arabia

Moayad Al Rasasi () and Hussain Alramadan
Additional contact information
Moayad Al Rasasi: Saudi Central Bank
Hussain Alramadan: Saudi Central Bank

International Advances in Economic Research, 2025, vol. 31, issue 1, No 1, 13 pages

Abstract: Abstract This paper analyzes the symmetric and asymmetric effects of global food prices on domestic consumer prices in Saudi Arabia based on monthly data ranging from January 1990 to November 2023. The domestic consumer price data for Saudi Arabia were obtained from the International Financial Statistics of the International Monetary Fund, whereas the global food prices were downloaded from the Food and Agriculture Organization of the United Nations. Unlike in previous studies that focused on this topic in Saudi Arabia, this paper accounts for nonlinearity in the analysis. First, on the basis of the linear autoregressive distributed lag model, the empirical results show that increasing global food prices by 1% pushes domestic prices higher by 0.56%. Moreover, with respect to nonlinearity, the estimated results based on the nonlinear autoregressive distributed lag model reveal that the impact of increasing global food prices is greater and more significant than the insignificant effect of falling global food prices. In other words, a rise in global food prices by 1.0% leads to a substantial increase in domestic prices by approximately 0.47%. However, falling global food prices do not substantially impact domestic prices.

Keywords: Food prices; Consumer prices; ARDL; NARDL; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: C13 C32 E31 Q02 Q10 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11294-025-09929-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:iaecre:v:31:y:2025:i:1:d:10.1007_s11294-025-09929-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11294

DOI: 10.1007/s11294-025-09929-1

Access Statistics for this article

International Advances in Economic Research is currently edited by Katherine S. Virgo

More articles in International Advances in Economic Research from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().