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Demand Analysis For Fish in Indonesia

Author

Listed:
  • David Naek Martua Siahaan

    (Master of Applied Economics, Padjadjaran University)

  • Ferry Hadiyanto

    (Department of Economics, Padjadjaran University)

Abstract

This study examines the demand for fish in Indonesia by estimating how prices, expenditure, and household demographics affect demand based on data from five regions of the country. Data is obtained from the National Socio-Economic Survey of 2014 and analysed using the Quadratic Almost Ideal Demand System (QUAIDS) model. The results show that expenditure on fish is elastic at the national and regional levels and it is considered a luxury good. At the national level, the estimated price elasticities show that fish is inelastic in rural and urban areas. Uncompensated cross-price elasticities in rural and urban areas illustrate that fish is a complement to meat and eggs and milk, and vice versa. Compensated cross-price elasticities show that fish is a complement to meat and substitute for eggs and milk. Uncompensated own-price elasticities of fish in five regions are relatively inelastic. Compensated own-price elasticities in most regions are negative, except in Sulawesi and Eastern Indonesia and the uncompensated cross-price elasticities of fish in all regions show that eggs and milk are substitutes for fish.

Suggested Citation

  • David Naek Martua Siahaan & Ferry Hadiyanto, 2019. "Demand Analysis For Fish in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201907, Department of Economics, Padjadjaran University, revised Dec 2019.
    • Handle: RePEc:unp:wpaper:201907
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    File URL: http://ceds.feb.unpad.ac.id/wopeds/201907.pdf
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    More about this item

    Keywords

    elasticity of demand for fish; QUAIDS; Indonesia;
    All these keywords.

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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