Driving Forces of Economic Prosperity: Agriculture and Non- Agriculture Dynamics in Food Production Value

Abstract

Agricultural food production is important for global food security which supports their livelihood and maintains their economic stability. If the countries fail to address the issue of food production, then it could lead to increased hunger, financial instability, and social unrest. Both agricultural factors and non-agricultural factors are essential for enhancing food production efficiency and resilience. Therefore, the study aimed to test the impact of agricultural and non-agricultural factors on food production values in Gulf countries. For this purpose, quantitative secondary data was collected from food and agricultural organizations and World Development Indicators from 2005 to 2023. Panel data from pooled, random, and fixed effect models were assessed and among those fixed and pooled models were selected. The regression results showed that agricultural land area, agricultural value-added, and employment in agriculture positively and significantly impacted food production values. Trade balance in agriculture also contributed positively and significant impact on food production value. Among non-agricultural factors, political stability, gross domestic product, and population have a strong positive and significant effect on food production value, while the inflation rate negatively affects food production values. These findings suggest that enhancing agricultural and non-agricultural factors is crucial for improving food production. The implications for policymakers include prioritizing investments in agricultural development, stabilizing trade, and addressing inflationary pressures to ensure sustainable food production and security. The study could also help other academicians or researchers to conduct their research in the future with an extended model.