FOOD-CONSUMPTION IN URBAN CHINA - AN EMPIRICAL-ANALYSIS

This paper examines consumption patterns of urban households in China using aggregated household consumption data. A demand system comprising six commodities (rice, pork, vegetables, fish, eggs and fruits) is estimated using a two-stage budgeting procedure which incorporates an almost ideal demand system (AIDS) in each stage. Elasticity estimates from the system are plausible and consistent with other relevant studies. Results from this study strengthen the evidence of the emergence of a large Chinese market for non-staple food. The study provides rationale and basis for additional research into Chinese food consumption, especially processed food.