Determinants of food demand among urban households in Minna Metropolis, Niger State, Nigeria

Agricultural products including rice, yam and cowpea play significant roles in the food consumption of urban dwellers. However, increase in crop production cost has continued to threaten urban food price in Nigeria. This study analyzed the determinants of demand for food commodities among urban households in Minna metropolis. Data were collected from 110 household heads of urban residences, which were selected through a three-stage random sampling technique. Data collected for the study were analyzed using multiple regression technique. The results showed that rice, yam and cowpea were price in-elastic. The cross-price elasticities for rice, yam and cowpea were -0.132, 0.028 and 0.005 respectively. The computed own price, cross price and income elasticity of demand for rice were –0.308, -0.132 and 0.018 respectively. For yam, the computed values were -1.262, 0.028 and 0.289 respectively. While for cowpea, these values were -0.530, 0.005 and 0.002 respectively. For the income elasticity, rice and cowpea were proven to be normal goods and yam as a luxury good. The social protection strategies in form of food aids policy should be put into action to minimize the inflationary pressure on food items in the urban areas.

Wpływ pandemii COVID-19 na handel rolno-spożywczy Polski: pierwsze doświadczenia

The outbreak of the COVID-19 pandemic at the beginning of 2020 significantly changed the conditions for the development of trade in agri-food products. The aim of the article is to assess the impact of the first months of the COVID-19 pandemic on the agri-food trade of Poland. The analysis was based on unpublished data from the Ministry of Finance, using descriptive statistics method. Preliminary trade data for the first half of 2020 showed that with few expectations Polish agri-food exports performed well during lockdown, that is in the period of the greatest restrictions related to the movement of people introduced by the COVID-19 pandemic. It resulted, inter alia, from the fact that food is a basic necessity (such as e.g. medicines) and is characterized by lower income elasticity of demand, and also from relatively small disruptions in production.

Gasoline Demand Elasticities at the Backdrop of Lower Oil Prices: Fuel-Subsidizing Country Case

This study investigates the income and price elasticities of gasoline demand for a fuel subsidizing country case, applying three different time-varying coefficient approaches to the data spanning the period from January 2002 to June 2018. The empirical estimations concluded a cointegration relationship between gasoline demand, income, and gasoline price. The income elasticity found ranges from 0.10 to 0.29, while the price elasticity remains constant over time, being −0.15. Income elasticity increases over time, slightly decreasing close to the end of the period, which is specific for a developing country. In the short run, gasoline demand does not respond to the changes in income and price. The policy implications are discussed based on the findings of the study. Research results show that since the income elasticity of demand is not constant, the use of constant elasticities obtained in previous studies might be misleading for policymaking purposes. An increase in income elasticity might be the cause of the inefficiency of the existing vehicles. The small price elasticity allows to say that if policy makers plan to reduce gasoline consumption then increasing its price would not substantially reduce the consumption. The current situation can be utilized to increase energy efficiency and implement eco-friendly technologies. For this purpose, the quality of existing transport modes can be improved. Meanwhile, to meet households’ needs, policies such as providing soft auto loans need to be formed to balance the recent drop in car sales.

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

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.

Estimating the Demand Elasticity of Rice in Bangladesh: An Application of the AIDS Model

This study determines the causes of consumption, compensated, and uncompensated demand for rice using the Linear Approximate Almost Ideal Demand System (LA-AIDS) model in Bangladesh. The model was used along with the corrected Stone Price Index. The study’s findings showed that the income elasticity of demand for rice was only 0.76, indicating that rice is a normal and necessary food item. The own-price elasticity (compensated and uncompensated) showed that all food items were price inelastic. The rice’s own-price elasticity demonstrated that if the price falls by 10%, rice demand will rise by 8.21%. This cross-price elasticity showed the weak substitution effects of a price change. Therefore, price interference may not lead to a substantial effect on food demand.

THE FUTURE OF INDONESIA AND GLOBAL AGRICULTURE: RICE CONSUMPTION AND AGRICULTURAL MODERNIZATION

In the industry revolution 4.0 era, the agriculture sector still has an important position in human life because, without this sector, human capital development cannot be well developed. Globally, the share of agriculture, forestry, and fishing sector has declined significantly in the last two decades. However, the demand on agriculture product, especially rice, incline every year. Rice supply and demand projection with appropriate methods are very important because their result affect how agricultural policies are applied. The aim of this study is to examine the likely evolution of rice consumption in Indonesia and forecast the Indonesia rice consumption per capita based on global data. The results indicate the income elasticity of demand for rice in the Indonesia has become negative. The forecast of model show that Indonesia’s rice demand will keep incline, at least in the next five years. Due to those result, in order to maintain farmers’ wealth, modernization in agriculture is needed. Government has encouraged some programs such as Simluhtan, Katam, Si Mantap, Smart Farming, Smart Green House, Autonomous Tractor, dan Smart Irrigation to accelerate the agricultural transformation. Unfortunately, human resource quality becomes a problem. Indonesia need massive effort so that modernization in agriculture works well.