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Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses

Author

Listed:
  • Tey, (John) Yeong-Sheng
  • Shamsudin, Mad Nasir
  • Mohamed, Zainalabidin
  • Abdullah, Amin Mahir
  • Radam, Alias

Abstract

In this study, the focus is on analyzing food demand behaviors in Malaysia. To be more specific, this study intends to estimate demand elasticities for twelve food categories with incorporation of food quality effects in the demand analyses. This study analyses the data from the Household Expenditure Survey 2004/2005 by Linear Approximate Almost Ideal Demand System (LA/AIDS) and unit value function. The estimated expenditure elasticities indicate that there will be growing demand for all the food categories, especially meat, fish, vegetables, oils and fats, and fruits. The own-price elasticities for rice, eggs, beverage, and oils & fats are more elastic than the rest of the food categories. This study also shows that there is quality effect in food demand.

Suggested Citation

  • Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses," MPRA Paper 14832, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14832
    as

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    File URL: https://mpra.ub.uni-muenchen.de/14832/1/MPRA_paper_14832.pdf
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    References listed on IDEAS

    as
    1. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
    2. Akira Ishida & Siong-Hook Law & Yoshihisa Aita, 2003. "Changes in food consumption expenditure in Malaysia," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 61-76.
    3. Giancarlo Moschini, 1995. "Units of Measurement and the Stone Index in Demand System Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 63-68.
    4. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    5. Tey Yeong Sheng & Mad Nasir Shamsudin & Zainalabidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "A Complete Demand System of Food in Malaysia," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3), pages 17-29, July.
    6. Tey Yeong Sheng & Mad Nasir Shamsudin & Zainal Abidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "Food Consumption Behavior Of The Malays In Malaysia," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 16(2), pages 209-219, December.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Food; demand behaviors. quality effects; demand analysis;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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