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Article
Publication date: 10 January 2023

Simeon Kaitibie, Arnold Missiame, Patrick Irungu and John N. Ng'ombe

Qatar, a wealthy country with an open economy has limited arable land. To meet its domestic food demand, the country heavily relies on food imports. Additionally, the over three…

Abstract

Purpose

Qatar, a wealthy country with an open economy has limited arable land. To meet its domestic food demand, the country heavily relies on food imports. Additionally, the over three year-long economic embargo enforced by regional neighbors and the covariate shock of the COVID-19 pandemic have demonstrated the country's vulnerability to food insecurity and potential for structural breaks in macroeconomic data. The purpose of this paper is to examine short- and long-run determinants of Qatar's imports of aggregate food, meats, dairy and cereals in the presence of structural breaks.

Design/methodology/approach

The authors use 24 years of food imports, gross domestic product (GDP) and consumer price index (CPI) data obtained from Qatar's Planning and Statistics Authority. They use the autoregressive distributed lag (ARDL) cointegration framework and Chambers and Pope's exact nonlinear aggregation approach.

Findings

Unit root tests in the presence of structural breaks reveal a mixture of I (1) and I (0) variables for which standard cointegration techniques do not apply. The authors found evidence of a significant long-run relationship between structural changes and food imports in Qatar. Impulse response functions indicate full adjustments within three-quarters of a year in the event of an exogenous shock to imports.

Research limitations/implications

An exogenous shock of one standard deviation on this variable would reduce Qatar's food imports by about 2.5% during the first period but recover after the third period.

Originality/value

The failure of past aggregate food demand studies to go beyond standard unit root testing creates considerable doubt about the accuracy of their elasticity estimates. The authors avoid that to provide more credible findings.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 1 January 1970

Ishrat Hossain, Aliyu Dahiru Muhammad, Binta Tijjani Jibril and Simeon Kaitibie

In societies with strong presence of Islam, Islamic instruments with more scope for fairness and equity can be innovatively harnessed to play an increasing role in the development…

4329

Abstract

Purpose

In societies with strong presence of Islam, Islamic instruments with more scope for fairness and equity can be innovatively harnessed to play an increasing role in the development process and poverty alleviation schemes. Poor smallholder farmers dominate agricultural production in many developing countries and contribute a significant portion of global food production. This paper aims to develop a scheme to improve poor smallholder farmers’ vulnerable financial situation through the application of Zakah and Salam contract, using Bangladesh as a case study. Secondary goals are to show the effect of the scheme on food security and relevance to Nigeria.

Design/methodology/approach

The authors explore the existing traditional modes of financing available to poor smallholders, identify their challenges and propose an appropriate Islamic financing scheme.

Findings

With the Zakah-based Salam forward contract, the proposed scheme would procure food through Institutional Demand to offer interest free financing, fair price and access to new marketing channels and reduce income uncertainty for the rural smallholders. The discussions indicate that the local food security will be enhanced through incentivized farming activities and disbursement of food from the food bank to the Zakah-eligible food insecure local people.

Research limitations/implications

This proposal brings forth a potentially powerful idea that needs further empirical validation.

Originality/value

The religion-based Institutional Demand initiative to promote smallholder agricultural development and social protection is a novel one. The attempt to apply the framework to Nigeria context shows the potential of the framework to generalize for other Muslim developing countries with similar characteristics, especially the poorer agriculture-based countries.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

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