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Estimation of Food Demand from Household Survey Data in Vietnam

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  • Linh Vu Hoang

    () (Center for Agricultural Policy, Institute of Policy and Strategy for Agriculture and Rural Development)

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 socioeconomic 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

  • Linh Vu Hoang, 2009. "Estimation of Food Demand from Household Survey Data in Vietnam," Working Papers 12, Development and Policies Research Center (DEPOCEN), Vietnam.
  • Handle: RePEc:dpc:wpaper:1209
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    Cited by:

    1. Amita Majumder & Ranjan Ray & Kompal Sinha, 2014. "A Unified Framework for the Estimation of Intra and Inter Country Food Purchasing Power Parities with Application to Cross Country Comparisons of Food Expenditure: India, Indonesia and Vietnam," Monash Economics Working Papers 31-14, Monash University, Department of Economics.
    2. Mousumi Das, 2014. "Measures, spatial profile and determinants of dietary diversity: Evidence from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-045, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Hoang, Hoa & Meyers, William H., 2015. "Rice demand in Vietnam: Dietary changes and implications for policy," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196621, Southern Agricultural Economics Association.
    4. Manisha Chakrabarty & Amita Majumder & Ranjan Ray, 2015. "Preferences, Spatial Prices and Inequality," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1488-1501, November.

    More about this item

    Keywords

    Vietnam; food consumption; food demand; AIDS; elasticity;

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