Income and Consumption Expenditure Pattern of Marginal and Small Farmers in Punjab

The study highlighted the income and consumption pattern of the marginal and small farmers in the three agro-climatic zones of Punjab for 2011-12. It was found that out of the total net family income of these farmers, the majority was earned from crop and dairying, followed by income from non-farm activities. The net per capita annual income of marginal and small farmers was found to be as low as about 15361 and 26625. Corresponding to this, the annual per capita household consumption expenditure was 12144 and 13239. This situation depicted the vulnerability of these farmers to indebtedness in case of unforeseen expenditure situations. Also, there existed an income and consumption disparity in Punjab, whereby the poorer section accounts for less than one-fifth share of the total income and expenditure. There was a need to address the problems of this section in isolation as this section formed the major proportion of the farming population in the state and was most prone to economic misery.

The study of the levels and pattern of income of the marginal and small farmers in Punjab becomes important in the wake of the most debated concern of agrarian stress in the state economy. For this, a primary study on marginal and small farmers was undertaken in the three agro-climatic zones of the state. Despite the grim agricultural situation in the state, crop and dairying still seemed to be contributing a major share to the total income of the farmers, followed by non-farm activities. The net per capita annual income of marginal and small farmers was as low as `15361 and 26625. A picture of the income inequality in the rural economy of Punjab further points towards the existing rural distress that is likely to affect the future growth of this sector. It was observed that the bottom 50 percent of the marginal and small farmers shared just 28 percent of the total income as against the upper 50 percent that shared about 72 percent of the total income. Reframing the existing farmer support schemes and making them small farmer specific along with stringent measures for their rightful implementation seemed to be the only way to make possible the easy survival of the smaller farmers.


The present study, dealing with the inequality in consumption of the rural households across the different regions, is based upon the primary data of the Punjab state. The analysis showed that Malwa excelled other two regions in the per capita consumption. The highest average propensity to consume was observed for Doaba, and it was the lowest for Malwa. All the rural households except large farm of all the three regions and medium farm households of Malwa and Majha were in deficit. Considering all households together, the inequality of household consumption expenditure was relatively high in all three regions, with the same being highest in Majha, followed by Malwa and Doaba. The concentration of consumption expenditure among the land-owning households was greater than the landless households.


2018 ◽  
Vol 69 (3) ◽  
pp. 207-229
Author(s):  
Bernardin Senadza ◽  
Edward Nketiah-Amponsah ◽  
Samuel Ampaw

Abstract This paper examines the impact of participation in both farm and nonfarm activities on both household consumption expenditure per adult equivalent and household per capita income, in rural Ghana. The objective is to ascertain whether the results are sensitive to the choice of well-being measure. We use a nationally representative dataset on 8,059 rural farm households collected in 2012/13. In order to account for potential selectivity and endogeneity biases, which previous studies failed to correct for, we adopt the endogenous switching regression (ESR) estimation technique. We find diversified households to be systematically different from their undiversified counterparts in terms of socioeconomic and demographic centeracteristics, thus justifying the empirical method used. Our results indicate a higher observed mean consumption for the diversified sub-sample compared to its counterfactual, implying that households participating in nonfarm enterprise activities in addition to farming have greater mean consumption compared to households engaged solely in farming. Similar conclusions are reached when income instead is used as the well-being indicator. Our findings, thus, indicate that the well-being implication of farm-nonfarm diversification is insensitive to the choice of well-being measure.


2011 ◽  
Vol 32 (1) ◽  
pp. 96-108
Author(s):  
Hoang Van Kinh ◽  
Daniel Westbrook

The degree to which the impact of schooling on real per capita household consumption expenditure (rpce) depends on the intensity of local labor market activity was estimated and changes in that relationship during a substantial part of Vietnam’s transition period (1993–2004 were documented). Key variables in the analysis are the years of schooling attained by the best-educated member of each household, an index of labor market activity at the commune level, and the interaction between the two. As schooling is likely to be endogenous, average educational attainment of others in the same age, gender, and commune cohort was used as an instrumental variable (IV). The estimated impact of educational attainment on rpce is economically substantial, statistically significant, increasing over time, and is powerfully enhanced by increasing labor market activity.


2020 ◽  
Vol 13 (1) ◽  
pp. 92
Author(s):  
Ahmad Zainuddin ◽  
Ratih Apri Utami ◽  
Nurul Dwi Novikarumsari

East Java is a province that has a high population, household consumption expenditure is an important thing to consider. The implication is that there will be an increase in production and investment in East Java. Therefore, household consumption expenditure is one of the determinants of community welfare. This study aims to analyze the structure of household consumption expenditure and the factors that influence food expenditure in East Java. The data used were secondary data from East Java in Figures 2019. This study was analyzed using multiple linear regression analysis. The analysis showed that there has been an increase in the welfare of the people of East Java. This is indicated by an increase in the amount of non-food expenditure is higher than food expenditure. Factors affecting household food expenditure in East Java are GRDP per capita, inflation rate, rice prices, and non-food expenditure. Based on these results it is suggested that the government needs to maintain the stability of prices of goods and services to avoid inflation because inflation will reduce public consumption and have implications for the economy of East Java. Keywords: food expenditure, GDRP per capita, inflation


The study investigated some aspects of food security situations in the Rewa district presently facing a very serious poverty and hunger situation. The study explores some significant factors influencing the food consumption pattern in the Rewa district using primary survey data covering 200 households. An empirical investigation applying multiple regression analysis revealed that per capita consumption of food or food consumption expenditure was positively influenced by age, educational level of household head and also by factors like ownership of household and access to LPG. Size and scheduled caste identity of the household, as well as access to PDS, affected negatively the food consumption pattern. The study helped to identify the barriers required for food availability at the household level in the district.


Author(s):  
Sherif Abdul Rahaman

This study aims to test the validity of the PIH for Ghana using aggregate annual data of GDP per capita and household consumption expenditure per capita from 1971 to 2017. The data used were taken from UN statistics. The PIH holds that the income a consumer expects to persist throughout his or her life is what determines their consumption. Earlier studies have shown that the PIH implies the magnitude of the revision in permanent income arising from innovation in the income process is proportional to the magnitude of the revision in consumption arising from the same innovation. This study tests this implication. Innovation in the income process here is the part of the income process that could not be forecasted. The study generates the innovation in the income process by estimating an ARMA model for income and then estimates a consumption equation by OLS using the consumption variable and the generated innovation in income variable.The study finds that the magnitude of the revision in permanent income arising from the innovation in income is larger than the magnitude of the revision in consumption resulting from the same innovation. This implies consumption response to changes in income is smaller than what the PIH predicts. This result is taken as evidence that the PIH does not hold for Ghana.


Author(s):  
Milan Palát ◽  
Alois Kunc

The paper deals with identifying relationships between the household consumption expenditure and the human development index (HDI) on the sample of countries of the world. It provides an analysis of the HDI and the household consumption expenditure and on the basis of available statistic data carries out evaluation of the correlation analysis between household consumption expenditure and HDI in six groups of countries: developed countries, countries of the former eastern bloc, countries of the Near East, countries of South East Asia, Latin American countries and African countries. With respect to results of the analysis, statistically significant dependences were found between the development of household consumption expenditure per capita and HDI. At countries of the former eastern bloc, the dependence is always statistically significant but it does not reach such intensity. At African and some Latin American countries, the dependence is already statistically insignificant. Thus, we can summarize that with decreasing GDP per capita the dependence of the household consumption expenditure development on HDI weakens. In this respect, the validity of a hypothesis is also verified that household consumption expenditure is correlated to the HDI development at the global comparison on the more heterogeneous sample of countries than any other analyses published so far.


2018 ◽  
Vol 13 (3) ◽  
pp. 380-389
Author(s):  
S. K. BHARDWAJ ◽  
R. K. AGGARWAL ◽  
TANVI KAPOOR

The present work was conducted to study the energy consumption pattern in different climatic zones (Sub mountain low hill sub tropical, Mid hill sub Humid, High hills wet temperate and High hills dry temperate zone) of rural habitations of Himachal Pradesh, India. Households were sleeted on the basis of multistage random sampling in the selected areas. A pretested questionnaire was prepared and used for conducting primary survey. It was revealed from the study the 90-100% households in the study area used fuelwood as primary energy source, which was followed by LPG and agricultural waste. Electricity was also being used as a source of energy but mainly for lighting. It was found that with the increase in the altitude the per capita per day energy consumption increased in case of fuelwood but the trend was reverse in case of electricity. The fuel consumption varied with the family size, income and land holdings.


Demographic structure determines the employment status in economic activity and household well-being. The wellbeing is positively associated with the household consumption expenditure and further relates to economic growth at the macro level. The demographic dependency ratio in this context is a widely used indicator to understand the impact of changing demographic structure on economic growth. This ratio estimates the possible potential of the productive workforce based on age criteria but ignores the actual engagement of the productive workforce. Therefore, the objective of the study was to compute the household economic dependency ratios and explore their trends and pattern for several quantiles of household consumption expenditure. For this purpose, this study utilized the NSSO (EUS), and Periodic Labor force survey data for the overall analysis and applied the OLS and quantile regression to perceive the relevance of employment status on the household consumption expenditure while controlling household characteristics. The findings implicate a positive relationship between employment status and household expenditure. The results also revealed an existing asymmetric relationship for dependency ratio and household expenditure ranging from lowest to highest dependency ratios. The individuals engaged in the human capital and domestic duties contribute most to the dependency ratios for a household. Moreover, the primary sector emerged as the major source of employment for the most vulnerable section, which represents the least household consumption expenditure


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