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A Complete Demand System of Food in Malaysia

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  • Tey Yeong Sheng
  • Mad Nasir Shamsudin
  • Zainalabidin Mohamed
  • Amin Mahir Abdullah
  • Alias Radam

Abstract

There has been a notable success in the Malaysian economy, with its countrymen getting wealthier and food consumption undergoing transitional changes. This study intends to analyze the complete demand system of food in Malaysia by using the Household Expenditure Survey 2004/2005 via the Linear Approximate Almost Ideal Demand System (LA/AIDS) model. As expected, the estimated own-price elasticities for all foods follow the law of demand. The empirical results show that the demand for all foods in response to the income is relatively positive, with expenditure elasticities of meat (1.110), fruits (1.341), vegetables (1.341), sugar and beverage (1.039) and other foods (1.115) being elastic. This study shows that the Malaysian food consumption pattern is not only moving towards higher value food products (especially meats) but also functional foods (fruits and vegetables) as the per capita income of Malaysians increases.

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Bibliographic Info

Article provided by IUP Publications in its journal The IUP Journal of Agricultural Economics.

Volume (Year): V (2008)
Issue (Month): 3 (July)
Pages: 17-29

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Handle: RePEc:icf:icfjag:v:05:y:2008:i:3:p:17-29

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Cited by:
  1. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir, 2008. "Demand analysis of food in Malaysia: A study of Malay ethnic," MPRA Paper 15064, University Library of Munich, Germany.
  2. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Demand analyses of food in Malaysia: Effects of model specification and demographic variables," MPRA Paper 15063, University Library of Munich, Germany.
  3. Tey Yeong Sheng & Mad Nasir Shamsudin & Zainal Abidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "Food Consumption Behavior Of The Malays In Malaysia," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 16(2), pages 209-219, December.
  4. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Analysis of demand for vegetable in Malaysia," MPRA Paper 15033, University Library of Munich, Germany.
  5. Tey, (John) Yeong-Sheng & Mohamed Arshad, Fatimah & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Radam, Alias, 2008. "Demand for meat quantitu and quality in Malaysia: Implications to Australia," MPRA Paper 15032, University Library of Munich, Germany.
  6. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses," MPRA Paper 14832, University Library of Munich, Germany.

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