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Cross-sectional analysis of food demand in the North Central, Nigeria: The quadratic almost ideal demand system (QUAIDS) approach

Author

Listed:
  • Abiodun Elijah Obayelu
  • V.O. Okoruwa
  • O.I.Y. Ajani

Abstract

Purpose - The purpose of this paper is to examine the impact of socio-economic variables on households' food demand. This paper derived the indirect utility function in terms of expenditure and price through the use of nonlinear demand quadratic almost ideal demand system (QUAIDS) model to estimate price, expenditure and elasticities of food items consumed in the North-Central, Nigeria, and the impact of the socio-economic variables on households' food demand. Design/methodology/approach - The primary data used came from random selection of 396 households between 2006 and 2007 through a stratified random sampling procedure from Kwara and Kogi states making up the North Central zone in Nigeria. Findings - All own price elasticities of the six food groups analyzed (root and tubers – RT, cereal – CR, legume – LG, animal protein – AP, fruits and vegetable – FV, fats and oil) showed that they are price inelastic. The results of income elasticity show that AP consumption is the most sensitive to income changes, while fats and oil is the least sensitive to income changes. Factors that positively and significantly affected demand for LG, FV, AP, CR and RT were household size (HSZ), level of education, primary occupation, access to credit, presence of children =6 years mainly at Originality/value - This paper is original and novel in that it examines the impact of socio-economic variables on households' food demand. High-income elasticities of demand for all the food groups in QUAIDS except fruits and vegetable, as well as fats and oils, suggests that income-generating policies will foster higher levels of consumption for these commodities.

Suggested Citation

  • Abiodun Elijah Obayelu & V.O. Okoruwa & O.I.Y. Ajani, 2009. "Cross-sectional analysis of food demand in the North Central, Nigeria: The quadratic almost ideal demand system (QUAIDS) approach," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 173-193, January.
    • Handle: RePEc:eme:caerpp:v:1:y:2009:i:2:p:173-193
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    Cited by:

    1. De Zhou & Xiaohua Yu & Thomas Herzfeld, 2015. "Dynamic food demand in urban China," China Agricultural Economic Review, Emerald Group Publishing, vol. 7(1), pages 27-44, February.
    2. Aborisade, Olumide & Carpio, Carlos, 2017. "Household Demand for Meat in Nigeria," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252839, Southern Agricultural Economics Association.
    3. repec:eee:jfpoli:v:71:y:2017:i:c:p:27-38 is not listed on IDEAS
    4. Akerele, Dare & Tiffin, R. & Srinivasan, C. S., 2013. "Household Food Demand in Nigeria: an Application of Multivariate Double-hurdle Model," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158700, Agricultural Economics Society.
    5. Ogundari, Kolawole, 2012. "Demand For Quantity Versus Quality In Beef, Chicken And Fish Consumption In Nigeria," Revista de Economia e Agronegocio / Brazilian Review of Economics and Agribusiness, Federal University of Vicosa, Department of Agricultural Economics, vol. 10(1).
    6. Haggblade, Steven & Me-Nsope, Nathalie M. & Staatz, John M., 2017. "Food security implications of staple food substitution in Sahelian West Africa," Food Policy, Elsevier, vol. 71(C), pages 27-38.
    7. Xiaohua Yu & Satoru Shimokawa, 2016. "Nutritional impacts of rising food prices in African countries: a review," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(5), pages 985-997, October.

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    Keywords

    Nigeria; Food products; Supply and demand;

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