Complete demand systems of food in Malaysia

As a one of the most rapidly developing countries in Asia, there have been notable changes in Malaysian food consumption pattern. Such changes in Malaysia play an important role in the outlook for future in Malaysian agri-food industry. By using Household Expenditure Survey 2004/2005 data, this stud...

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Main Authors: Tey, Yeong Sheng, Shamsudin, Mad Nasir, Mohamed, Zainal Abidin, Abdullah, Amin Mahir, Radam, Alias
Format: Article
Language:English
Published: Czech Academy of Agricultural Sciences 2008
Online Access:http://psasir.upm.edu.my/id/eprint/13723/
http://psasir.upm.edu.my/id/eprint/13723/1/Complete%20demand%20systems%20of%20food%20in%20Malaysia.pdf
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author Tey, Yeong Sheng
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Abdullah, Amin Mahir
Radam, Alias
author_facet Tey, Yeong Sheng
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Abdullah, Amin Mahir
Radam, Alias
author_sort Tey, Yeong Sheng
building UPM Institutional Repository
collection Online Access
description As a one of the most rapidly developing countries in Asia, there have been notable changes in Malaysian food consumption pattern. Such changes in Malaysia play an important role in the outlook for future in Malaysian agri-food industry. By using Household Expenditure Survey 2004/2005 data, this study aims to build a complete demand system of food in Malaysia via Linear Approximate Almost Ideal Demand System (LA/AIDS), with incorporation of the Stone price index and the Laspeyres price index respectively. The empirical results show that the application of the Laspeyres price index produces more plausible estimates of expenditure and own-price elasticities in Malaysia. In the estimation of the LA/AIDS with incorporation of the Laspeyres price index, the estimated expenditure elasticities show that demands for meat (1.4064), fish (1.2440), vegetables (1.1729), and fruits (1.0905) are likely to grow faster than other traditional main calorie sources-rice (0.9091) and bread & other cereals (0.3177) in corresponding to positive income effect in future. This study shows that as Malaysian society becomes more affluent, Malaysian consumers are increasingly seeking for higher value protein based products, as well as functional healthy foods.
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spelling upm-137232018-08-14T07:12:31Z http://psasir.upm.edu.my/id/eprint/13723/ Complete demand systems of food in Malaysia Tey, Yeong Sheng Shamsudin, Mad Nasir Mohamed, Zainal Abidin Abdullah, Amin Mahir Radam, Alias As a one of the most rapidly developing countries in Asia, there have been notable changes in Malaysian food consumption pattern. Such changes in Malaysia play an important role in the outlook for future in Malaysian agri-food industry. By using Household Expenditure Survey 2004/2005 data, this study aims to build a complete demand system of food in Malaysia via Linear Approximate Almost Ideal Demand System (LA/AIDS), with incorporation of the Stone price index and the Laspeyres price index respectively. The empirical results show that the application of the Laspeyres price index produces more plausible estimates of expenditure and own-price elasticities in Malaysia. In the estimation of the LA/AIDS with incorporation of the Laspeyres price index, the estimated expenditure elasticities show that demands for meat (1.4064), fish (1.2440), vegetables (1.1729), and fruits (1.0905) are likely to grow faster than other traditional main calorie sources-rice (0.9091) and bread & other cereals (0.3177) in corresponding to positive income effect in future. This study shows that as Malaysian society becomes more affluent, Malaysian consumers are increasingly seeking for higher value protein based products, as well as functional healthy foods. Czech Academy of Agricultural Sciences 2008 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/13723/1/Complete%20demand%20systems%20of%20food%20in%20Malaysia.pdf Tey, Yeong Sheng and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin and Abdullah, Amin Mahir and Radam, Alias (2008) Complete demand systems of food in Malaysia. Agricultural Economics, 54 (10). pp. 467-475. ISSN 0139-570X; ESSN: 1805-9295 https://www.agriculturejournals.cz/web/agricecon.htm?volume=54&firstPage=467&type=publishedArticle
spellingShingle Tey, Yeong Sheng
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Abdullah, Amin Mahir
Radam, Alias
Complete demand systems of food in Malaysia
title Complete demand systems of food in Malaysia
title_full Complete demand systems of food in Malaysia
title_fullStr Complete demand systems of food in Malaysia
title_full_unstemmed Complete demand systems of food in Malaysia
title_short Complete demand systems of food in Malaysia
title_sort complete demand systems of food in malaysia
url http://psasir.upm.edu.my/id/eprint/13723/
http://psasir.upm.edu.my/id/eprint/13723/
http://psasir.upm.edu.my/id/eprint/13723/1/Complete%20demand%20systems%20of%20food%20in%20Malaysia.pdf