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The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam

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  • Mergenthaler, Marcus
  • Weinberger, Katinka
  • Qaim, Matin
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    Abstract

    Food systems in developing countries are currently undergoing a rapid transformation towards high-value products and modern supply chains. While supply side aspects of this transformation have been analyzed previously, issues of consumer demand have received much less attention. This article analyses demand patterns for fresh fruits and vegetables in Vietnam, using household survey data and a demand systems approach. Demand for products from modern supply chains - particularly supermarkets and non-traditional imports - is highly income elastic, and the income effect is stronger than the impact of prices and supermarket penetration. This highlights the importance of considering demand side aspects when projecting future trends. Our results imply a continued restructuring of the food sector in the further process of economic development.

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    Bibliographic Info

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 34 (2009)
    Issue (Month): 5 (October)
    Pages: 426-436

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    Handle: RePEc:eee:jfpoli:v:34:y:2009:i:5:p:426-436

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    Web page: http://www.elsevier.com/locate/foodpol

    Related research

    Keywords: Transformation of food systems Supermarkets Food safety Non-traditional imports Southeast Asia Vietnam;

    References

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    1. Rodríguez, Elsa Mirta M. & Berges, Miriam & Casellas, Karina & Di Paola, Rosángela & Lupín, M. Beatriz & Garrido, Laura & Gentile, Natacha, 2002. "Consumer behaviour and supermarkets in Argentina," Nülan. Deposited Documents 392, Centro de Documentación, Facultad de Ciencias Económicas y Sociales, Universidad Nacional de Mar del Plata.
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    Citations

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    Cited by:
    1. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "The supermarket revolution and impacts on agricultural labor markets: Empirical evidence from Kenya," Discussion Papers 107745, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
    5. Christiaensen,Luc & Demery,Lionel & Kuhl, Jesper, 2010. "The (Evolving) Role of Agriculture in Poverty Reduction: An Empirical Perspective," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
    6. Han-Hsin Chang & Charles van Marrewijk & Randy Stringer & Wendy Umberger, 2013. "Investment, awareness, supermarkets, and profits: heterogeneous chili farmers in Indonesia," Working Papers 13-13, Utrecht School of Economics.
    7. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    8. LeDang TRUNG, 2013. "Economic and Welfare Impacts of Disasters in East Asia and Policy ResponsesL The Case of Vietnam," Working Papers DP-2013-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Reardon, Thomas, 2011. "The global rise and impact of supermarkets: an international perspective," Conference Proceedings 2011 125312, Crawford Fund.
    10. Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2011. "Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand," World Development, Elsevier, vol. 39(9), pages 1624-1637, September.
    11. Rao, Elizaphan J.O. & Brummer, Bernhard & Qaim, Matin, 2011. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," Discussion Papers 113508, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    12. John Gibson & Bonggeun Kim, 2012. "Do the Urban Poor Face Higher Food Prices? Evidence from Vietnam," Working Papers in Economics 12/16, University of Waikato, Department of Economics.
    13. Elizaphan J.O. Rao & Matin Qaim, 2009. "Farmer participation in supermarket channels and technical efficiency: The case of vegetable production in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 18, Courant Research Centre PEG.
    14. Muehlfeld, Katrin & Weitzel, Utz & van Witteloostuijn, Arjen, 2011. "Mergers and acquisitions in the global food processing industry in 1986-2006," Food Policy, Elsevier, vol. 36(4), pages 466-479, August.

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