Market development and food demand in rural China
This paper seeks to understand how market imperfections affect the behavior of consumers in China's rural economy. A theoretical and empirical model is developed and estimated using a household-level data from six counties in Hebei Province. The results show that market development plays an important role in explaining food consumption behavior in China. As the market develops, farmers demand less grain and vegetables and consume more meat, fruit, and other food products after control for income and price effects. Moreover, the elasticities of demand also change as farm households begin to rely more on rural markets. The results of this paper suggest that a government concerned about the welfare of its rural population may want to be paying a more active role in fostering rural markets. Understanding the forces behind these consumption pattern shifts also will aid academics and policymakers in making better projections about future consumerneeds and price levels.
|Date of creation:||1995|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Udry, Christopher, 1990. "Credit Markets in Northern Nigeria: Credit as Insurance in a Rural Economy," World Bank Economic Review, World Bank Group, vol. 4(3), pages 251-269, September.
- Barten, Anton P, 1977. "The Systems of Consumer Demand Functions Approach: A Review," Econometrica, Econometric Society, vol. 45(1), pages 23-51, January.
- Huang, Jikun & David, Cristina C., 1993.
"Demand for cereal grains in Asia: the effect of urbanization,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 8(2), February.
- Huang, Jikun & David, Cristina C., 1993. "Demand for cereal grains in Asia: The effect of urbanization," Agricultural Economics, Blackwell, vol. 8(2), pages 107-124, February.
- Wang, Zhi & Kinsey, Jean, 1994. "Consumption and saving behavior under strict and partial rationing," China Economic Review, Elsevier, vol. 5(1), pages 83-100.
- Shoichi Ito & E. Wesley F. Peterson & Warren R. Grant, 1989. "Rice in Asia: Is It Becoming an Inferior Good?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 32-42.
- Peterson, E. Wesley F. & Jin, Lan & Ito, Shoichi, 1991. "An econometric analysis of rice consumption in the People's Republic of China," Agricultural Economics, Blackwell, vol. 6(1), pages 67-78, October.
- Sicular, Terry, 1988. "Plan and Market in China's Agricultural Commerce," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 283-307, April.
- Peterson, E. Wesley F. & Jin, Lan & Ito, Shoichi, 1991. "An econometric analysis of rice consumption in the People's Republic of China," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 6(1), October.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
When requesting a correction, please mention this item's handle: RePEc:fpr:fcnddp:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.