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Household Vegetable Demand in the Philippines: Is There an Urban-Rural Divide?

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  • Mutuc, Maria Erlinda M.
  • Pan, Suwen
  • Rejesus, Roderick M.

Abstract

A three-step estimation method and a Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) are used to assess the vegetable demand behavior of rural and urban households in the Philippines. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities, there are no significant differences in the expenditure, own-price, and cross-price elasticities of urban households relative to rural households. Only demand for cabbage and tomatoes in the urban areas tend to be statistically different compared to rural areas. The demand behavior information gleaned from the analysis provides important insights that could help guide nutritional and public policies in rural and urban areas of the Philippines.

Suggested Citation

  • Mutuc, Maria Erlinda M. & Pan, Suwen & Rejesus, Roderick M., 2006. "Household Vegetable Demand in the Philippines: Is There an Urban-Rural Divide?," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35483, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35483
    DOI: 10.22004/ag.econ.35483
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    Cited by:

    1. Abiodun O. OTUNAIYA & Adebayo M. SHITTU, 2014. "Complete household demand system of vegetables in Ogun State, Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 509-516.
    2. Tan, Andrew K. G. & Yen, Steven T. & Hasan, Abdul Rahman & Muhamed, Kamarudin, 2014. "Household Expenditures on Vegetables in Malaysia," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-19, November.
    3. Tomoki Fujii, 2014. "Is urban food demand in the Philippines different from China?," Working Papers 18-2014, Singapore Management University, School of Economics.
    4. Go, Eugenia, 2020. "Over Land and Over Sea: Domestic Trade Frictions in the Philippines," ADB Economics Working Paper Series 611, Asian Development Bank.
    5. Eugenia Go, 2020. "Trade implications of transport cost in the Philippines," Economics PhD Theses 0320, Department of Economics, University of Sussex Business School.
    6. Obisesan, Adekemi, 2021. "Households’ Demand for Fruits and Vegetables in Nigeria: Panel QUAIDS Approach," 2021 Conference, August 17-31, 2021, Virtual 315858, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Community/Rural/Urban Development; Consumer/Household Economics;

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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