Food expenditure patterns in urban and rural Indonesia, 1981 to 1993
Date
1996
Authors
Widjajanti, E.
Li, C.
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Advisors
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Type:
Journal article
Citation
Australasian Agribusiness Review, 1996; 4(2):93-113
Statement of Responsibility
Erni Widjajanti and Elton Li
Conference Name
Abstract
This paper analyses food expenditure patterns in Indonesia with special emphasis on the difference between urban and rural sectors, and on shifts in expenditure patterns over time. Food expenditure patterns in Indonesia vary between urban and rural consumers. Shifts over time in expenditure patterns are also evident. A/though incomes differ between rural and urban areas and have increased over the years, differences in income a/one fail to sufficiently explain variations in food expenditure patterns over time and between rural and urban locations. Rural income elasticity for most food products is higher than for the corresponding urban elasticity. Downward trends in the estimated values of the elasticity for some individual commodities over time are noticeable, with the trends more noticeable for urban areas. Downward trends in income elasticity for cereals are especially pronounced. The relatively high income elasticity for the non-staple food items, both in rural and urban areas, suggest the potential of a large Indonesian market for non-staple food in the future. Notable commodities are meats, eggs and milk; and fruits, which are strong luxuries both in urban and rural areas.