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Abstract

With the recent rapid increase in urbanization, wealth, and foreign technicians and labor in Saudi Arabia, wheat is becoming an important diet staple. A sufficient wheat supply and stabilization of its price are vital to the society. Yet because of industrial development and economic growth, the total area used for wheat production in Saudi Arabia dropped from 125,000 hectares in 1972 to 45,000 hectares in 1973. Consequently, the Kingdom has become increasingly dependent on imported wheat. The objectives of this study are to: 1) select appropriate variables to establish an estimated supply equation; 2) select appropriate variables to establish an estimated demand equation and 3) apply these two estimated equations to make demand and supply projections.

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