IDEAS home Printed from https://ideas.repec.org/a/ags/ajaees/357471.html

Effect of Income and Economies of Scale on Household Food Demand in Pakistan

Author

Listed:
  • Rehman, Abdur
  • Jian, Wang
  • Wensheng, Sun
  • Niya, Liu

Abstract

This paper determines the household food demand for various income groups in Pakistan namely, The Lower Income Group (≤ $ 93.023), Lower-middle Income Group ( $93.034-139.534), Middle Income Group ($139.546-209.302), Upper-middle Income Group ($ 209.314-406.977) and Upper Income Group ($406.977+) United States dollars respectively. The Pakistani rupees are converted into US $ according to the average exchange rate of (2010-11).The study uses Pakistan Social and Living Standard Measurement Survey data (2010-11) conducted by the Federal Bureau of Statistics, Government of Pakistan, Islamabad. The food expenditures are the sum of monthly expenditures by each household on the following 16 major food items, wheat, rice, pulses, vegetables ghee, Milk (Fresh), butter, mutton, beef, chicken, fish, fruits, vegetables, salt, spices, sugar and gur. The household size and income elasticities are estimated to explain the food consumption trends in Pakistan. The results of the study indicate that all the income and household size elasticities are positive and significant at one percent level of significance. And the study also indicates that food income elasticity is the highest (0.901) for the Lower-Middle Income Group and the same is the lowest (0.716) for the Upper Income Group. Similarly, household size elasticity is the highest (0.181) for the Upper Income Group and the same is the lowest (0.067) for Lower Income Group. It is highly recommended that family planning system should be introduced in the country to keep away from the harmful impact of large family sizes upon the household food consumption, and it is also necessary for policy makers to make plan to improve the food availability and to increase family income to develop the standard and quality of the rural people of Pakistan.

Suggested Citation

  • Rehman, Abdur & Jian, Wang & Wensheng, Sun & Niya, Liu, 2014. "Effect of Income and Economies of Scale on Household Food Demand in Pakistan," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 3(3).
    • Handle: RePEc:ags:ajaees:357471
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/357471/files/Rehman332013AJAEES6938.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tokoyama, Yuki & Takagi, Shingo & Ishibashi, Kimiko & Chern, Wen S., 2002. "Recent Food Consumption Pattern Of Japanese Households: Driving Forces Behind Westernization," 2002 Annual meeting, July 28-31, Long Beach, CA 19712, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    3. Sohail J. Malik & Naeem Sarwar, 1993. "Some Tests for Differences in Consumption Patterns: The Impact of Remittances Using Household Income and Expenditure Survey Data of Pakistan 1987-88," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 699-711.
    4. Nadeem A. Burney & Ashfaque H. Khan, 1991. "Household Consumption Patterns in Pakistan: An Urban-Rural Comparison Using Micro Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(2), pages 145-171.
    5. Ulrich Witt, 2001. "special issue: Learning to consume - A theory of wants and the growth of demand," Journal of Evolutionary Economics, Springer, vol. 11(1), pages 23-36.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eatzaz Ahmad & Muhammad Arshad, 2007. "Household Budget Analysis for Pakistan under Varying the Parameter Approach," Microeconomics Working Papers 22180, East Asian Bureau of Economic Research.
    2. Francis Teal, 2006. "Consumption and welfare in Ghana in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1252-1269.
    3. Stevens, Andrew W., 2017. "Quinoa quandary: Cultural tastes and nutrition in Peru," Food Policy, Elsevier, vol. 71(C), pages 132-142.
    4. Mehmet Şahinli & Halil Fidan, 2012. "Estimation of food demand in Turkey: method of an almost ideal demand system," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(2), pages 653-663, February.
    5. Thaiyoong Penny Mok & Gillis Maclean & Paul Dalziel, 2013. "Alternative Poverty Lines for Malaysia," Asian Economic Journal, East Asian Economic Association, vol. 27(1), pages 85-104, March.
    6. Cantner Uwe & Dosi Giovanni, 2014. "Guest Editorial," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 116-119, April.
    7. Nguyen, Minh Cong & Winters, Paul, 2011. "The impact of migration on food consumption patterns: The case of Vietnam," Food Policy, Elsevier, vol. 36(1), pages 71-87, February.
    8. Joshua Henkel & Georg Schwesinger, 2020. "Establishing Sustainable Consumption - How Future Policies Can Channel Consumer Preferences," Bremen Papers on Economics & Innovation 2007, University of Bremen, Faculty of Business Studies and Economics.
    9. Chad M. Baum, 2013. "Mass-Produced Food: the Rise and Fall of the Promise of Health and Safety," Papers on Economics and Evolution 2013-03, Philipps University Marburg, Department of Geography.
    10. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa Since the Fall of Apartheid," NBER Working Papers 11384, National Bureau of Economic Research, Inc.
    11. Ekaterina Berendeeva & Tatiana Ratnikova, 2016. "The Deaton–Paxson paradox in the consumption of Russian households," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 42, pages 54-74.
    12. Munten, Pauline & Swaen, Valérie & Vanhamme, Joëlle, 2024. "Exploring rebound effects in Access-Based services (ABS)," Journal of Business Research, Elsevier, vol. 182(C).
    13. Vellore Arthi & James Fenske, 2018. "Polygamy and child mortality: Historical and modern evidence from Nigeria’s Igbo," Review of Economics of the Household, Springer, vol. 16(1), pages 97-141, March.
    14. Martin Binder, 2009. "Some Considerations Regarding the Problem of Multidimensional Utility," Jena Economics Research Papers 2009-099, Friedrich-Schiller-University Jena.
    15. Climent Quintana-Domeque, 2018. "Introduction to the special issue in honor of Nobel Laureate Angus Deaton: “consumption, poverty and inequality in the household”," Review of Economics of the Household, Springer, vol. 16(1), pages 1-3, March.
    16. Diane Whitmore, 2002. "What Are Food Stamps Worth?," Working Papers 847, Princeton University, Department of Economics, Industrial Relations Section..
    17. Chambwera, Muyeye & Folmer, Henk, 2007. "Fuel switching in Harare: An almost ideal demand system approach," Energy Policy, Elsevier, vol. 35(4), pages 2538-2548, April.
    18. Gräbner, Claudius, 2016. "From realism to instrumentalism - and back? Methodological implications of changes in the epistemology of economics," MPRA Paper 71933, University Library of Munich, Germany.
    19. David Fielding & Chris Hajzler & Jim MacGee, 2011. "Determinants of Relative Price Variability during a Recession: Evidence from Canada at the Time of the Great Depression," Working Papers 1107, University of Otago, Department of Economics, revised Aug 2011.
    20. Feyza G. Sahinyazan & Marie‐Ève Rancourt & Vedat Verter, 2021. "Food Aid Modality Selection Problem," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 965-983, April.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaees:357471. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://journalajaees.com/index.php/AJAEES/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.