THE DERIVED DEMAND FOR CHEMICAL FERTILIZERIN SAUDI ARABIA

The main objective of this study is to identify the factors affecting chemical fertilizer demand in Saudi Arabia, using the static and dynamic models. Results suggest that fertilizer price, government support in terms of loans and subsidies, crop area and tractor price, are the main factors influencing chemical fertilizer demand. The study is based on time series data from 1976-1988. Results showed that both static and dynamic models performed superiory based on statistical and economic indicators. The static model forecasting ability was tested, and then future demand up to the year 2000 was predicted