TY - JOUR
T1 - Urbanisation and the Demand for Food
AU - Warr, Peter
N1 - Publisher Copyright:
© 2020, © 2020 ANU Indonesia Project.
PY - 2020/1/2
Y1 - 2020/1/2
N2 - Is the demand for food influenced by urbanisation, and if so, in what way? This article reviews the relevant literature on this question and conducts an empirical investigation for Indonesia, asking whether the relationship between food demand and the conventional economic variables explaining demand is altered by structural changes in the degree of urbanisation. Urbanisation is associated with changes in levels of both household expenditures and preferences and it is analytically necessary to separate these two effects. Some of the effects commonly attributed to urbanisation occur among rural households whose expenditures increase but who do not move to urban areas. The empirical results for Indonesia show that urbanisation marginally reduces the expenditure share of food in aggregate, along with the responsiveness of this expenditure to changes in total expenditure. More importantly, it shifts the commodity composition of food consumption, but in ways that are more nuanced than earlier literature reveals.
AB - Is the demand for food influenced by urbanisation, and if so, in what way? This article reviews the relevant literature on this question and conducts an empirical investigation for Indonesia, asking whether the relationship between food demand and the conventional economic variables explaining demand is altered by structural changes in the degree of urbanisation. Urbanisation is associated with changes in levels of both household expenditures and preferences and it is analytically necessary to separate these two effects. Some of the effects commonly attributed to urbanisation occur among rural households whose expenditures increase but who do not move to urban areas. The empirical results for Indonesia show that urbanisation marginally reduces the expenditure share of food in aggregate, along with the responsiveness of this expenditure to changes in total expenditure. More importantly, it shifts the commodity composition of food consumption, but in ways that are more nuanced than earlier literature reveals.
KW - Indonesia
KW - food demand
KW - urbanisation
UR - http://www.scopus.com/inward/record.url?scp=85082672342&partnerID=8YFLogxK
U2 - 10.1080/00074918.2020.1742285
DO - 10.1080/00074918.2020.1742285
M3 - Article
SN - 0007-4918
VL - 56
SP - 43
EP - 86
JO - Bulletin of Indonesian Economic Studies
JF - Bulletin of Indonesian Economic Studies
IS - 1
ER -