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Estimation Of Food Demand In Vietnam

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  • VU, LINH HOANG

Abstract

This paper analyzes food consumption patterns of Vietnamese households, using a complete demand system and socio-demographic information. Demand elasticities are estimated using the AIDS model and the latest Vietnamese household survey data in 2006. The results indicate that food consumption pattern in Vietnam are affected by income, price as well as socio-economic and geographic factors. All food has positive expenditure elasticities and negative own-price elasticities. In particular, rice has mean expenditure elasticity of 0.36 and mean own-price elasticity of -0.80. Thus, an increase in the price in rice by one percent will reduce rice consumption by 0.8 percent, on average. On the other hand, an increase in the income by 1 percent leads to an increase in rice demand by 0.36 percent. It indicates that food consumption in urban and rural areas, and among regions and income groups are different. It points out that targeted food policies should be formulated based on specific food demand patterns in the groups.

Suggested Citation

  • Vu, Linh Hoang, 2012. "Estimation Of Food Demand In Vietnam," MPRA Paper 94801, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94801
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    More about this item

    Keywords

    Vietnam; food consumption; food demand; AIDS; elasticity;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D6 - Microeconomics - - Welfare Economics
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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