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A Note on Socio-Economic Characteristics and the Demand for Beverages in Nigeria: Does Income Matter?

Author

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  • Kolawole Ogundari

    (Dept. of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Fukuoka, Japan)

Abstract

The paper investigates demand characteristics of beverage consumption with a focus on the role of income in Nigeria. It uses double hurdle model to analyze the probability of purchasing beverages and the demand for beverages based on the 2003/2004 Nigeria Living Standards Survey (NLSS) data. Within this context, the empirical results show that household income increases the probability of purchasing and the demand for beverages in the study. Specifically, our results reveal that 10 percent rises in household income increases the consumption of beverages by about 17 percent. Meaning that an average household in the sample considered the demand for beverages to be luxury. But a closer look at the result across income groups show that households in the low and high-income groups considered the demand for beverages to be necessity and luxury, respectively in the study.

Suggested Citation

  • Kolawole Ogundari, 2013. "A Note on Socio-Economic Characteristics and the Demand for Beverages in Nigeria: Does Income Matter?," Economic Analysis and Policy, Elsevier, vol. 43(3), pages 293-302, December.
    • Handle: RePEc:eee:ecanpo:v:43:y:2013:i:3:p:292-302
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    Citations

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    Cited by:

    1. Egemen İPEK, 2019. "An Empirical Study on Alcohol Participation and Consumption Decision in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).

    More about this item

    Keywords

    Beverages; Double Hurdle model; Income Elasticity; Income groups; Nigeria;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D1 - Microeconomics - - Household Behavior

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