An Economic Study of the Potential Arab Integration of Levantine Maize Production

Document Type : Original Article

Authors

1 Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University, Cairo - Egypt.

2 Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University, Cairo - Egypt

Abstract

The research aims to study the economics of Levantine maize production in the Arab world by studying the current status of Levantine maize production in the most producing countries, then statistically estimating the Levantine maize production function in the Arab world in the long term, and comparing the results.
The most important results are as follows:

A study of the general trends of production, area, and productivity of Levantine maize in the Arab world shows that, although production is the product of the cultivated area and the per-feddan productivity, the increase in the total production of Levantine maize in Egypt is due to the area factor only, as the per-feddan productivity is decreasing at a significant rate. In Iraq, the relative stability in the total production of Levantine maize is due to the area factor, despite the high per-feddan productivity. In Syria, the relative stability of its production of Levantine maize is due to both area and productivity factors. In Somalia and Morocco, the decrease in production rates of Levantine maize is due to the area factor only.
By extracting the economic efficiency of using the seed element (x1) in the production function of Levantine maize in the Arab world in the long term, the results showed that its economic efficiency is that the value of the marginal product is greater than the price of the resource, which indicates the need to intensify the use of the seed elements, and this is consistent with economic logic.
The results of the data showed that the total production elasticity of the production factors in the estimated function in the long run, which was about 0.94, indicates the nature of the decreasing return to capacity, where production decreases by a percentage less than the increase in production factors. The coefficient of determination for the estimated relationship was about 81%, which reflects the changes occurring in production and the changes responsible for the corresponding changes in the production factors. By estimating the marginal product in the long run for the amount of seeds (x1) of Levantine maize, it amounted to about 6.09 thousand tons, and the average product was about 20.99 thousand tons, while the marginal product of the production capacity (s) was about 3.2, and the average product was estimated at about 4.9 thousand tons in the long run.
The results of the research showed that there is a weakness in the possibility of Arab integration for the production of Levantine maize.

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