TITLE:
Estimation of Rural-Urban Expenditure and Elasticities of Food Items in Zambia: Evidence from Living Conditions Monitoring Survey
AUTHORS:
Musaka Mulanga Chikobola, Abdi-Khalil Edriss
KEYWORDS:
Urban-Rural, Engel Curves, Expenditure and Household Size Elasticities, Zambia
JOURNAL NAME:
Modern Economy,
Vol.7 No.5,
May
16,
2016
ABSTRACT: The study uses double logarithmic analysis to determine the household
food demand pattern in urban and rural regions of Zambia for various stratums.
The study utilized secondary data for the 2010 Living Conditions Monitoring
Survey (LCMS) from Central Statistical Office (CSO), Government of Zambia. The
study used a two-stage cluster sampling procedure to collect the data. Cross
sectional data for 19,137 households were used in this analysis. The household
size and income elasticities are estimated to explain the food consumption
trends in Zambia. The results of the study indicate that all the incomes and
some household size elasticities positively influenced food expenditure. The
food income elasticity is the highest (0.6313) for the non-agricultural stratum
in rural areas and the same is the lowest (0.2276) for high cost stratum in
urban areas. Similarly, household size elasticity is the highest (0.1174) for
the high cost stratum in urban areas and the same is the lowest (0.0647) for
low cost stratum in urban areas. The elasticities tend to be higher in rural
areas than urban ones. These differences in consumption patterns between rural
and urban areas, and among stratums imply that change in consumption patterns
in Zambia will be affected not only by aggregate income growth but also by
changes in the distribution of that income to foster food security in the
households.