335 Agricultural Economics – Czech, 66, 2020 (7): 335–344 Short Communication https://doi.org/10.17221/3/2020-AGRICECON Economic integration has become necessarily im- portant for regional development. Much of econom- ic integration has already been established, such as the European Union (EU) and the South Asian Asso- ciation for Regional Cooperation (SAARC). Economic integration helps resolve the issue of food security and enhances regional trade among member countries (Mkandawire et al. 2014). Most SAARC countries are dependent on agriculture, which accounts for a large share of their gross domestic product (GDP). South Asia accounts for 27.4% of the global population and 40% of the world’s poor people, of which 35% are undernourished – equivalent to 27.6% of the global un- dernourished people (Worldometer 2016). Food security is a signifcant part of national and eco- nomic security (Badalova and Larionov 2019). Te idea of food security mainly surfaced during the mid-1970s, in the midst of the global food crisis. Te world food conference held in 1974 had defned the term food secu- rity as “assuring the supply of food, price stability of food at national and international level” (FAO 2006). Accord- ing to the Committee on World Food Security (2012) there are four dimensions of food security: availability, access, nutritional status (food utilization), and stability. Regional trade and food security challenges: Te case of SAARC countries Muhammad Waqas Khalid 1 , Ashar Sultan Kayani 1 , Jamal Mohammed Alotaibi 2 , Muhammad Muddassir 2 , Bader Alhafi Alotaibi 2 , Hazem S. Kassem 2,3, * 1 Department of Economics, PMAS Arid Agriculture University, Rawalpindi, Pakistan 2 Department of Agricultural Extension and Rural Society, King Saud University, Riyadh, Saudi Arabia 3 Agricultural Extension and Rural Society Department, Mansoura University, Mansoura, Egypt *Corresponding author: hskassem@ksu.edu.sa Citation: Khalid M.W., Kayani A.S., Alotaibi J.M., Muddassir M., Alotaibi B.A., Kassem H.S. (2020): Regional trade and food security challenges: Te case of SAARC countries. Agric. Econ. – Czech, 66: 335–344. Abstract: Higher consumption and increased import requirements for the South Asian Association for Regional Cooperation (SAARC) region can be catered through neighboring trade partners if resources are optimally utilized. Te purpose of this research is to analyze the connection between regional trade of SAARC countries and the food security challenges faced by the region. Te study uses data from 1990–2018 for Pakistan, India, Sri Lanka, and Bangla- desh to econometrically analyze the determinants of the volume of food trade. Te results show that the gross domestic product of importing or exporting countries and foreign direct investment (FDI) have positive impact on regional trade. Te bilateral exchange rate between trading partners has a negative impact on the trade volume. Te results also showed the absence of a long-run relationship between volume of trade and food security using Johansen’s cointegration test. Our analysis suggests that policy makers should focus on the means for creating favorable environment in Pakistan and India to not only meet the increasing global demands for food but also increasing their competitiveness for high-quality and low-quality priced products in major exports markets. Keywords: agricultural products; business linkages; economic impact; investment; price Supported by the Deanship of Scientifc Research, King Saud University, Saudi Arabia, the Research Group No. RGP –1440-006.