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A complete demand system of food in Malaysia


Tey, Yeong Sheng and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin and Abdullah, Amin Mahir and Radam, Alias (2008) A complete demand system of food in Malaysia. The ICFAI Journal of Agricultural Economics, 5 (3). pp. 17-29. ISSN 0973-2276


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.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Agriculture
Faculty of Economics and Management
Publisher: The Icfai University Press
Keywords: Malaysian economy; Linear Approximate Almost Ideal Demand System (LA/AIDS) model; Transitional changes; Consumption; Feedstuffs market; Agricultural commodities; Food demand system
Depositing User: Nabilah Mustapa
Date Deposited: 06 May 2015 01:00
Last Modified: 16 Jul 2018 06:43
URI: http://psasir.upm.edu.my/id/eprint/12675
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