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Analysis of Consumption and Demand Elasticities for Food Products in Balochistan

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  • Samina Khalil
  • Hazrat Yousaf

Abstract

This study analyzes the households’ consumption patterns and demand elasticities of Balochistan in both the urban and rural areas. We make use of the Household Integrated Expenditure Survey (HIES) of Pakistan for the year 2005-6. The linear-log models are applied for the analysis of households’ consumption patterns. The LA/AIDS model is used in order to estimate the demand elasticities. The study shows that the households’ expenditure on food items is increasing at decreasing rate. All the food items are considered as necessity except in the case of vegetable ghee for urban and rural Balochistan. The high expenditure elasticities of several food items e.g. wheat, milk, beef and vegetable ghee call for food support programs, different agriculture policies like subsidies on electricity for water irrigation, pesticides, etc. The major share of total expenditure is devoted to wheat consumption than other food items.

Suggested Citation

  • Samina Khalil & Hazrat Yousaf, 2012. "Analysis of Consumption and Demand Elasticities for Food Products in Balochistan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(1), pages 1103-1122.
    • Handle: RePEc:asi:ijoass:v:7:y:2012:i:1:p:1103-1122:id:2290
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    Cited by:

    1. Khurram SHAHZAD* & Muhammad Nadeem SARWAR**, 2018. "Analysis of Food Demand Patterns of Sindh Province, Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 147-168.
    2. Naveed Hayat & Anwar Hussain & Hazrat Yousaf, 2016. "Food Demand in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 94-113, March.

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