Estimation of meat demand system in Malaysia:
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Date
2006
Authors
Sinalubong-Paraguas, Maria Divina
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Abstract
Aggregated time series data for differentiated meat products namely, beef, pork, poultry and mutton were used to estimate and analyze Malaysian market demand for meats. The study aimed to select the most appropriate demand model between the equally popular Rotterdam model and the First Differenced Linear Approximate Almost Ideal Demand System (FDLAIDS) model by using a non-nested approach. Also, several demographic variables are augmented to the demand models to determine their effect on the choice of the suitable model as well as to identify their impact on meat demand, and to model potential structural change.
Results of the model selection are ambiguous. Both Rotterdam and the FDLAIDS models with and without the presence of demographic effects are accepted as an appropriate model for this data. However, further discrimination criteria revealed that the FDLAIDS model with or without the presence of demographic effects represents more appropriately the Malaysian market demand for meat than the Rotterdam model. Also, the elasticities from the FDLAIDS were found to be more reliable than the Rotterdam model.
The increasing rates of female labour force participation as well as the rising rate of urbanization appear to have a significant impact on the observed meat consumption pattern. On the other hand, the changes in proportion of different racial population (i.e. Malay, Chinese and Indian) and the changes in proportion of the aging population have no effect on the demand pattern for meats.
Description
Master
Keywords
Mathematical science , Meat demand system , Rotterdam model , Fdlaids model