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Demand Growth in Developing Countries

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  • David Abler
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    Abstract

    This report prepared by a consultant, Dr. David Abler of Penn State University in the United States, examines structural changes in the demand for agricultural products arising from economic growth in a number of large developing and emerging economies comprising primarily the BRIIC group of countries (Brazil, Russia, India, Indonesia and China). It reviews and evaluates a number of studies made of the effects of economic growth in large developing and emerging economies on agricultural product demand and the structure of demand. In particular, the report seeks to evaluate the effects of economic growth and rising incomes on the composition of agricultural product demand across product categories (e.g. cereals vs. meat), within product categories (e.g. lower-quality cereals vs. higher-quality cereals) and on the evolution of price and income elasticities of demand for agricultural products - that is, how rapidly are they moving toward the low elasticities seen in many OECD countries. The report also utilises the results of these studies to draw out the possible implications for agricultural commodity demand, commodity prices, and possible price volatility.

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    File URL: http://dx.doi.org/10.1787/5km91p2xcsd4-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Food, Agriculture and Fisheries Papers with number 29.

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    Date of creation: Jul 2010
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    Handle: RePEc:oec:agraaa:29-en

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    Keywords: economic growth; agricultural food demand; price and income elasticities of demand; food quality; demand attributes; price volatility; agricultural commodity prices;

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