More Efficient Production Subsidies for Emerging Agriculture in Arab Micro-States: A Conceptual Model

Review of Middle East Economics and Finance 2013; 9(3): 293-319

28 Pages Posted: 16 Sep 2014

See all articles by David Raboy

David Raboy

NOVA Community College ; George Mason University

Syed Abul Basher

East West University

Ishrat Hossain

University of Technology, Sydney - Faculty of Business - Center for Health Economics Research and Evaluation (CHERE)

Simeon Kaitibie

Qatar University - College of Business and Economics

Date Written: September 14, 2014

Abstract

Recent periods of volatile food prices have prompted several import-dependent Arab micro-states to consider at least some domestic production as a way of mitigating extremely volatile food prices, which even in rich micro-states can have adverse health and economic effects. Using Qatar as a case study, we employ non-linear mathematical programming and analogs to measures of volatility in the financial sector to develop a model to guide the constitution of a crop portfolio for the inaugural year for domestic production, supplemented by storage, which is optimal in the sense of achieving the most dampening effect on price volatility. We conclude that the desired result cannot be achieved for grains through domestic production and that strategic storage will play a crucial role. However, our defined target for volatility reduction, well short of self-sufficiency, can be achieved for all other raw products through an obtainable level of domestic production.

Suggested Citation

Raboy, David and Basher, Syed Abul and Hossain, Ishrat and Kaitibie, Simeon, More Efficient Production Subsidies for Emerging Agriculture in Arab Micro-States: A Conceptual Model (September 14, 2014). Review of Middle East Economics and Finance 2013; 9(3): 293-319. Available at SSRN: https://ssrn.com/abstract=2496200

David Raboy (Contact Author)

NOVA Community College ( email )

Sterling, VA 20164-8699
United States

George Mason University

VA
United States

Syed Abul Basher

East West University ( email )

Aftabnagar Main Road
Plot No. A-2
Dhaka, 1219
Bangladesh

HOME PAGE: http://syedbasher.org

Ishrat Hossain

University of Technology, Sydney - Faculty of Business - Center for Health Economics Research and Evaluation (CHERE) ( email )

Sydney NSW 2000
Australia

Simeon Kaitibie

Qatar University - College of Business and Economics ( email )

2713 Doha
Qatar

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