Economic Implications of Food Demand in Akoko South West, Ondo State, Nigeria: Aids Approach
Keywords:Demand System, expenditure elasticities, cross-price elasticities, food commodity groups, demand pattern, demographic effects, compensated elasticities
AbstractThe study examined the socio-economic characteristics of food consuming households, estimated the complete demand functions for some selected common food commodities, their prices and expenditure elasticities in Akoko South West (ASW) local government in Ondo state, Nigeria. The study examined demand analysis for food in ASW, using primary data with the use of questionnaire on some selected food-consuming households within the study area. Data collected were subjected to descriptive statistics for estimating demographic variables. The result of the descriptive statistics showed that semolina constituted the largest share of the household total food expenditure, among the low income and rural households but mostly among the married and the medium-size male-headed households who had tertiary-education. The Almost Ideal Demand System results showed that besides being a normal good, price inelastic, and expenditure inelastic, semolina has changed from being a luxury to being a necessity and has become a major food staple in the ASW metropolis. In conclusion, the study discovered that the prices of rice, beans, yam, garri, wheat, yam flour, and semolina were significantly important in the share of household total food budget at constant real income. Finally, the study showed from the result that the importance of semolina in ASW metropolis diet will increase as economic growth continues. This study therefore recommends that effort should be made to boost economic activities of ASW zone. This will increase their income and consequently improve their spending on the nutritious food items.
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