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Food Demand in Pakistan

Author

Listed:
  • Naveed Hayat
  • Anwar Hussain
  • Hazrat Yousaf

Abstract

This study analyzes the household food demand followed by projecting the future level of demand of selected food commodity groups in Pakistan. It uses Pakistan Panel Household Survey (PPHS) for the year 2010, conducted by Pakistan Institute of Development Economics (PIDE). The linear approximation/almost ideal demand system (LA/AIDS) model is used to estimate the demand elasticities, while a simple growth model is used for food demand projections. The empirical results reveal that food grains, pulses, ghee, sugar and vegetables are necessities, while milk and meat are luxuries. Pulses and vegetables, ghee and meat, milk and sugar are identified as gross complements on the basis of uncompensated cross-price elasticities. The uncompensated cross-price elasticities of food grains indicate the substitutive relationship between different food items, such as pulses, meat and vegetables. An increase in the household income will induce a substantial expansion in household demand for milk and meat products, but the consumption of these foods will decline if household size grew, ceteris paribus .

Suggested Citation

  • 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.
    • Handle: RePEc:sae:soueco:v:17:y:2016:i:1:p:94-113
    DOI: 10.1177/1391561415621826
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    References listed on IDEAS

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    1. Surabhi Mittal, 2008. "Demand-Supply Trends and Projections of Food in India," Indian Council for Research on International Economic Relations, New Delhi Working Papers 209, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. 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. 2(7), pages 1103-1122, July.
    3. Umar Farooq & Trevor Young & Muhammad, 1999. "An Investigation into the Farm Households Consumption Patterns in Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(3), pages 293-305.
    4. Abid A. Burki, 1997. "Estimating Consumer Preferences for Food, Using Time Series Data of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(2), pages 131-153.
    5. Munir Ahmad & Umar Farooq, 2010. "The State of Food Security in Pakistan: Future Challenges and Coping Strategies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 903-923.
    6. 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.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    8. Kumar, Praduman & Joshi, P.K. & Birthal, Pratap Singh, 2009. "Demand Projections for Foodgrains in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2), July.
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    Cited by:

    1. Chantal Le Mouël & Anna Birgit Milford & Benjamin L. Bodirsky & Susanne Rolinski, 2019. "Drivers of meat consumption," Post-Print hal-02175593, HAL.

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    More about this item

    Keywords

    Food demand; projection; PPHS; LA/AIDS model; growth model; elasticities;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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