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2016 | OriginalPaper | Chapter

Is Urban Food Demand in the Philippines Different from China?

Author : Tomoki Fujii

Published in: Chinese Global Production Networks in ASEAN

Publisher: Springer International Publishing

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Abstract

It is essential to understand the consumption pattern of food and how it changes over time to formulate sound economic policies as well as marketing and pricing strategies. In this study, we estimate the Quadratic Almost Ideal Demand System with six rounds of the Family Income Expenditure Survey exploiting the conditional linearity of the demand system. We find that the Filipino diet has become westernized and that the changes in urban food demand elasticities are qualitatively similar to those in urban China, especially for meat, fruits, and vegetables. We also offer some policy and business implications.

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There are about 80 provinces in the Philippines during the study period, though the definitions of provinces change slightly over time. We use the finest geographic disaggregation that is possible in the data.

Apparently, Mutuc et al. (2007) have used FIES data for the year 2000, which contain the expenditure and quantity for each food item. However, the data we purchased from the NSO only contain the expenditure data, and thus we cannot derive the implicit prices households face from the FIES data. Furthermore, it would not be possible to obtain relevant quantities for non-food items. Therefore, we chose to aggregate goods instead in this study.

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Title: Is Urban Food Demand in the Philippines Different from China?
Author: Tomoki Fujii
Publisher: Springer International Publishing
Book: Chinese Global Production Networks in ASEAN
Print ISBN: 978-3-319-24230-9

Electronic ISBN: 978-3-319-24232-3

Copyright Year: 2016
DOI: https://doi.org/10.1007/978-3-319-24232-3_6