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A Complete Demand System of Food in Malaysia

Author

Listed:
  • Tey Yeong Sheng
  • Mad Nasir Shamsudin
  • Zainalabidin Mohamed
  • Amin Mahir Abdullah
  • Alias Radam

Abstract

There has been a notable success in the Malaysian economy, with its countrymen getting wealthier and food consumption undergoing transitional changes. This study intends to analyze the complete demand system of food in Malaysia by using the Household Expenditure Survey 2004/2005 via the Linear Approximate Almost Ideal Demand System (LA/AIDS) model. As expected, the estimated own-price elasticities for all foods follow the law of demand. The empirical results show that the demand for all foods in response to the income is relatively positive, with expenditure elasticities of meat (1.110), fruits (1.341), vegetables (1.341), sugar and beverage (1.039) and other foods (1.115) being elastic. This study shows that the Malaysian food consumption pattern is not only moving towards higher value food products (especially meats) but also functional foods (fruits and vegetables) as the per capita income of Malaysians increases.

Suggested Citation

  • Tey Yeong Sheng & Mad Nasir Shamsudin & Zainalabidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "A Complete Demand System of Food in Malaysia," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3), pages 17-29, July.
    • Handle: RePEc:icf:icfjag:v:05:y:2008:i:3:p:17-29
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    Citations

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    Cited by:

    1. Echeverría, Lucía & Molina, José Alberto, 2021. "Poor vs Non-Poor Households in Uruguay: Welfare Differences from Food Price Changes," GLO Discussion Paper Series 890, Global Labor Organization (GLO).
    2. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Analysis of demand for vegetable in Malaysia," MPRA Paper 15033, University Library of Munich, Germany.
    3. Kenneth R. Szulczyk & Muhammad A. Cheema & Ross Cullen & Atiqur Rahman Khan, 2020. "Bioelectricity in Malaysia: economic feasibility, environmental and deforestation implications," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 294-321, April.
    4. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir, 2008. "Demand analysis of food in Malaysia: A study of Malay ethnic," MPRA Paper 15064, University Library of Munich, Germany.
    5. Bartłomiej Bajan & Natalia Genstwa & Luboš Smutka, 2021. "The similarity of food consumption patterns in selected EU countries combined with the similarity of food production and imports," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(8), pages 316-326.
    6. Abiodun O. OTUNAIYA & Adebayo M. SHITTU, 2014. "Complete household demand system of vegetables in Ogun State, Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 509-516.
    7. Olaniyi, Oladokun Nafiu & Szulczyk, Kenneth R., 2020. "Estimating the economic damage and treatment cost of basal stem rot striking the Malaysian oil palms," Forest Policy and Economics, Elsevier, vol. 116(C).
    8. Tan, Andrew K. G. & Yen, Steven T. & Hasan, Abdul Rahman & Muhamed, Kamarudin, 2015. "Determinants of Purchase Likelihoods and Amounts Spent on Meat in Malaysia: A Sample Selection System Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-16, April.
    9. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses," MPRA Paper 14832, University Library of Munich, Germany.
    10. Tey, (John) Yeong-Sheng & Mohamed Arshad, Fatimah & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Radam, Alias, 2008. "Demand for meat quantitu and quality in Malaysia: Implications to Australia," MPRA Paper 15032, University Library of Munich, Germany.
    11. Mohtar Rasyid & Anita Kristina, 2021. "Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 289-295.
    12. Karel JANDA & Jakub MIKOLÁŠEK & Martin NETUKA, 2010. "Complete almost ideal demand system approach to the Czech alcohol demand," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(9), pages 421-434.
    13. Tey Yeong Sheng & Mad Nasir Shamsudin & Zainal Abidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "Food Consumption Behavior Of The Malays In Malaysia," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 16(2), pages 209-219, December.
    14. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Demand analyses of food in Malaysia: Effects of model specification and demographic variables," MPRA Paper 15063, University Library of Munich, Germany.
    15. Kimkpe, Thierry A. & Adegbola, Patrice Y. & Yabi, Jacob A. & Adekambi, Souleiman & Biaou, Gauthier, 2016. "Déterminants de la consommation du riz local en Afrique de l’ouest : cas du Benin," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249298, African Association of Agricultural Economists (AAAE).

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