How Much is the Consumption Potential of Citizenized Migrants? — Based on the Estimation of Migrants’ Income Elasticity of Demand in the New Era of China

2020 ◽  
pp. 2050009
Author(s):  
Jie CHENG ◽  
Xi YIN
Keyword(s):  
Economic Development ◽  
Urban Areas ◽  
Income Elasticity ◽  
Household Survey ◽  
Total Consumption ◽  
Registration System ◽  
New Era ◽  
Elasticity Of Demand ◽  
Nationally Representative ◽  
Income Elasticity Of Demand

The economic development and urbanization in China have stepped into a new stage, and the style of migrants’ consumption has changed. We use nationally representative data from China Migrants Dynamic Survey (2010–2017) for the evaluation of migrants’ income elasticity of demand and data from Urban Household Survey for that of local citizens in the new era of China. The results show the following: (1) Migrants’ income elasticity of demand has reached 0.67 since the new era, presenting a sharply rising trend. In 2017, this number rose to 0.72, indicating that the overall consumption behavior of migrants tended to be localized. (2) Compared with the average consumption elasticity of local citizens (around 0.8), migrants’ income elasticity of demand was low, and still had room for improvement. (3) Citizenized migrants play a significant role in stimulating consumption. As estimated with consumption function, if citizenized migrants’ income elasticity of demand converges with that of local citizens, the total consumption will reach 15.8 trillion in 2030, equivalent to 9.3% of GDP of the year. The consumption growth directly driven by citizenized migrants is about 8 trillion yuan, equivalent to 4.7 percentage points of the GDP. Migrants are not only labor forces but also important consumers for urban areas. Therefore, to expand domestic demands and shift economic development paradigm, it is crucial to citizenize migrants as soon as possible by accelerating the construction of new-type urbanization and the reform of household registration system.

International Trade and Economic Development

1964 ◽  
Vol 2 (4) ◽  
pp. 491-511 ◽  
Author(s):  
Nicholas Kaldor
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Income Elasticity ◽  
World Market ◽  
Low Income Countries ◽  
Elasticity Of Demand ◽  
Primary Products ◽  
Manufactured Goods ◽  
Income Elasticity Of Demand ◽  
Volume Of Trade

A Recebt study by the U.N. Secretariat provides ample proof, if further proof were needed, that the problem of the economic development of the low-income countries cannot be solved without these countries becoming not only producers, but also exporters of manufactured goods, on an important scale.1 At present 86 per cent of the exports of the ‘developing countries’2 consists of primary products, and only 14 per cent of manufactured goods. But the world market for primary commodities expands only slowly, owing to the low income elasticity of demand. This is partly due to the low income elasticity of food consumption in the wealthy countries and the rapid growth of their own agricultural production, and partly to economies in the use of materials in industry and the development of synthetics. Since 1938, the volume of trade in manufactures has more than trebled, while the volume of trade in primary products has increased only by two-thirds.

scholarly journals ANALISIS PERMINTAAN KEDELAI DI INDONESIA

2017 ◽  
Vol 12 (1) ◽  
pp. 42
Author(s):  
Septi Rostika Anjani ◽  
Dwidjono Hadi Darwanto ◽  
Jangkung Handoyo Mulyo
Keyword(s):  
Regression Analysis ◽  
Capita Income ◽  
Income Elasticity ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Per Capita Income ◽  
Elasticity Of Demand ◽  
Per Capita ◽  
Income Elasticity Of Demand

This study aims to analyze the factors that influence the demand of soybean in Indonesia. The research method uses descriptive analysis of secondary data which includes the price of imported soybeans, the price of chicken, per capita  income,  the rate of inflation and import tariff policy  year period 1980-2013 which sourced from FAO  and  other  sources.  Estimation  of  demand  function  using  multiple  linear regression  analysis  were  transformed  in  the  form  of  natural  logarithm.  Regression analysis showed that soybean demand in Indonesia was influenced partially by prices of chicken, per capita income, and the rate of inflation. The price elasticity of demand of soybean in Indonesia is inelastic, that is equal 0,22. While the income elasticity of demand  for  soybeans  is  positive  which  means  that  soy  is  a  staple  item  for  the Indonesian people.

scholarly journals Income elasticity of demand within individual consumer groups and the level of income elasticity of the entire market demand 

2012 ◽  
Vol 52 (No. 9) ◽  
pp. 412-417
Author(s):  
P. Syrovátka
Keyword(s):  
Consumer Behaviour ◽  
Income Elasticity ◽  
Meat Products ◽  
Market Demand ◽  
Demand Functions ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Aggregation Equation ◽  
Application Potential ◽  
Income Elasticity Of Demand

The paper is focused on the derivation of the mathematical relationship among the income-elasticity level of the entire market demand and the income-elasticity values of the demand functions of the consumers’ groups buying on the defined market. The determination of the mathematical term was based on the linearity of the relevant demand functions. Under the linearity assumption, the income elasticity coefficient of the entire market demand equals the weighted sum of the income-demand elasticities of the differentiated consumer groups buying on the given market. The weights in the aggregation formula are defined as the related demand shares, i.e. as the proportions of the groups’ demands to the entire market demand. The derived aggregation equation is quite held if no demand interactions (e.g. the snob or fashion effect) are recorded among differentiated consumers’ groups. The derived formula was examined by using empirical data about the consumer behaviour of Czech households in the market of meat and meat products (Czech Statistical Office). However, the application potential of the achieved term for the income-elasticity aggregations is much broader within the consumer-behaviour analysis. In addition to the subject aggregations of the demand functions, we can also apply the derived formula for the analysis and estimations of the income elasticities within the demand-object aggregations, i.e. the multistage analysis of the income elasticity of consumer demand. Another possibility of the use of the aggregation equation is for the evaluations and estimations of the income elasticity of the region-demand functions in relation to the subregions’ demands or reversely.

scholarly journals An Econometric Model of the Market for New England Groundfish

1985 ◽  
Vol 14 (2) ◽  
pp. 128-143 ◽  
Author(s):  
Stephen R. Crutchfield
Keyword(s):  
New England ◽  
Economic Model ◽  
Income Elasticity ◽  
Econometric Model ◽  
Luxury Good ◽  
Domestic Industry ◽  
Elasticity Of Demand ◽  
Multi Level ◽  
Using Data ◽  
Income Elasticity Of Demand

This paper develops an economic model of the New England groundfish market. A multi-sector, multi-level econometric model is estimated using data from 1970 to 1982. The parameters of the estimated model are used to characterize consumer demand for groundfish and related products. Retail and exvessel demands for fresh and frozen groundfish fillets are found to be highly elastic. Fresh fillets especially show high income elasticity of demand, reflecting their status as a luxury good. Only a very small and statistically weak relationship was found between the prices of imported groundfish and domestic ex vessel prices indicating that proposals to assist the domestic industry via tariffs may be ineffectual.

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