THE DEMAND FOR FOOD GRAIN IN CHINA : NEW INSIGHTS INTO A CONTROVERSY

There is a substantial controversy in the economics literature over the magnitude of the expenditure elasticity for food grain in China that is caused, to a large extent, by whether time-series or cross-section data are used in the analysis. A set of reasonable elasticities for a complete demand system is estimated by using a panel of county level data in Guangdong Province for the last ten years. The results show that food grain has a small positive income elasticity, implying that food grain is not an inferior good in China. The reason that consumption per capita has not increased during a period of rapid economic growth in income is that the relative prices of the food and non-food substitutes for food grain have decreased.


Issue Date:
2001-04
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/31606
PURL Identifier:
http://purl.umn.edu/31606
Published in:
Agricultural and Resource Economics Review, 30, 1
Page range:
1-9
Total Pages:
9




 Record created 2017-04-01, last modified 2020-10-28

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