Demand analysis for cabbage and tomato in the Philippines, 2008

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Marilyn M. Elauria, Ma. Eden S. Piadozo,

Abstract

Vegetable is considered a cheap nutritional source by most Filipinos. According to Food and Nutrition Research Institute (FNRI) mean one-day per capita vegetable intake by the Filipinos is way below the recommended rate which is 400 grams per day. This study analyzed the demand for cabbage and tomato in the Philippines with the specific objectives of comparing per capita consumption of cabbage and tomato by socio- economic class, barangay classification, and occupational group; examining the effects of selected factors on the household demand for cabbage and tomato; determining the demand elasticities of cabbage and tomato; and coming up with recommendation policy based on the consumption patterns that will enhance the consumption of cabbage and tomato in the Philippines.

The study utilized weekly household demand data gathered by Bureau of Agricultural Statistics (BAS) in November 2008. Two functional forms, linear and double log regression models were used in this study. A double log form of regression was chosen than the linear form because adjusted R-squared and value of overall significance of the model, most number of significant variables, the signs of the regression coefficients conformed to the demand theory, and the estimated coefficients provided the demand elasticities. Different demand elasticities were employed to estimate the own price, cross price and income elasticity of the said vegetables.

Results of multiple regression showed that the demand for cabbage and tomato in household level and per capita level was significantly influenced by the own prices of cabbage and tomato, prices of substitutes and complements, household size, educational attainment of household head, barangay and socio-economic classifications, and household income. Income was found to be the most significant factor that affects the demand for cabbage and tomato for both levels. The results of Chow test support the full dataset regression such that utilization of cabbage and tomato are statistically different for rural and urban respondents. The overall results of demand elasticities showed that cabbage and tomato have inelastic demand.

Low income is one of the determinants for low consumption of cabbage and tomato for both household and individuals. The government should intensify efforts to create opportunities for livelihood and income generation especially in the rural areas. Both the government and business sector should take persistent activities to increase public awareness on the health and nutritional benefits of eating these vegetables. To increase consumption especially by low income groups, home production should be encouraged.

Language

English

Call Number

Thesis

Document Type

Thesis

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