Analyzing per capita food consumption patterns in net food-importing developing countries

Abstract

Net food-importing developing countries, which account for 30% of countries globally, and roughly 20% of the global population, must seek to reduce their vulnerabilities in food production trade shocks. This study investigates per capita food consumption patterns in 60 net food-importing developing countries using ICP 2017 data for eight food categories. Employing the linear approximate, almost ideal demand system model, the research derives marginal shares, income and price elasticities of demand, shedding light on consumption behaviors and responsiveness to changes in income and prices. Results highlight that additional expenditure on per capita food consumption is primarily allocated to fruits, vegetables, meat, and bread and cereals, with considerable variations among countries. At the same time, minimal allocation is observed for sugar and honey, as well as fats and oils. Income elasticities indicate varying degrees of responsiveness across food categories. In contrast, own-price elasticities underscore significant sensitivity to price fluctuations, notably for beverages, milk, cheese, and eggs, meat, fats and oils, and fish and seafood. Moreover, cross-price elasticities suggest predominantly substitution relationships between pairs of food categories, on average. Additionally, a visually informative map displaying estimated marginal shares, income elasticities, and own-price elasticities for the eight food categories was created. These findings offer valuable insights for policymakers and stakeholders in understanding consumption dynamics and formulating effective strategies to address food security and welfare concerns in net food-importing developing countries.

Keywords

• Food security
• Elasticities
• ICP 2017
• LA-AIDS model