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Analysis Of Rural Household Consumption Expenditure In South Africa: The Case Of Food Plot Holders In Tyefu Irrigation Scheme In The Eastern Cape Province

Author

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  • Belete, A.
  • Igodan, C.O.
  • M'Marete, C.
  • van Averbeke, W.

Abstract

Policy formulation in relation to rural development requires research on rural household consumption behaviour and patterns. In this paper research implications of consumption function theory in relation to rural household expenditures are briefly outlined and results of a cross-section analysis of seven expenditure categories of food plot holders at Tyefu Irrigation Scheme are reported. Consumption function parameters are estimated by ordinary least square method of regression of farm account data. The analysis reveals that the sampled food plot holders have a marginal propensity to consume of (0.349) as well as average propensity to consume of (0.652). Family characteristics (used as explanatory variables) such as age distribution and family size vary in their ability to explain expenditure patterns depending upon types of commodity. Further research will help to rigorously assess the impact of additional forces such as education, location, farm assets, etc. upon the standard of living of farm people.

Suggested Citation

  • Belete, A. & Igodan, C.O. & M'Marete, C. & van Averbeke, W., 1999. "Analysis Of Rural Household Consumption Expenditure In South Africa: The Case Of Food Plot Holders In Tyefu Irrigation Scheme In The Eastern Cape Province," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 38(2).
    • Handle: RePEc:ags:agreko:245966
    DOI: 10.22004/ag.econ.245966
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    References listed on IDEAS

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    1. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    2. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    3. Ray, Ranjan, 1980. "Analysis of a Time Series of Household Expenditure Surveys for India," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 595-602, November.
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    Cited by:

    1. Wynne, Adrian T. & Lyne, Michael C., 2003. "Rural Economic Growth Linkages and Small Scale Poultry Production: A Survey of Poultry Producers in KwaZulu-Natal," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19095, Agricultural Economics Association of South Africa (AEASA).
    2. Kabeya Clement Mulamba, 2022. "Relationship between households’ share of food expenditure and income across South African districts: a multilevel regression analysis," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    3. Isoto, Rosemary E. & Kraybill, David S. & Erbaugh, Mark J., 2014. "Impact of integrated pest management technologies on farm revenues of rural households: The case of smallholder Arabica coffee farmers," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(2), pages 1-13, April.

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