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Demand for meat products in Malaysia

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  • Tey, (John) Yeong-Sheng
  • Shamsudin, Mad Nasir
  • Mohamed, Zainalabidin
  • Abdullah, Amin Mahir
  • Radam, Alias

Abstract

One distinct change in Malaysians’ food consumption behavior has been the preference towards meat products. The entire agri-food industry is impacted by changes in food consumption behaviors. This study attempts to provide a better understanding of meat consumption behaviors, by estimating income and price elasticities in Malaysia. Expenditure and price elasticities are estimated by Linear Approximate Almost Ideal Demand System (LA/AIDS) model in the first stage, followed by estimation of Engel function in the second stage in order to obtain the estimates of income elasticities for the meat products using Household Expenditure Survey 2004/05 data. The estimated positive and inelastic income elasticities indicate that all meat products are normal and necessity goods, except other meats. The estimates of the own-price elasticities of demand for all the meat products are greater than unity. This study shows that there would be increasing demand for major meat products among Malaysians in the future.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15034.

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Date of creation: 04 May 2008
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Handle: RePEc:pra:mprapa:15034

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Keywords: Meat; Linear Approximate Almost Ideal Demand System model; Demand elasticity;

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  1. Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
  2. Jung, Jione & Koo, Won W., 2000. "An Econometric Analysis Of Demand For Meat And Fish Products In Korea," Agricultural Economics Reports, North Dakota State University, Department of Agribusiness and Applied Economics 23122, North Dakota State University, Department of Agribusiness and Applied Economics.
  3. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
  4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 312-26, June.
  5. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 8(3), pages 365-71, July.
  6. Jung, Jione & Koo, Won W., 2002. "Demand For Meat And Fish Products In Korea," 2002 Annual meeting, July 28-31, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19895, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
  8. Wen S. Chern & Kimiko Ishibashi & Kiyoshi Taniguchi & Yuki Tokoyama, 2002. "Analysis of Food Consumption Behavior by Japanese Households," Working Papers, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) 02-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
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Cited by:
  1. 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.

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