28/08/2014

ECONOMIC GROWTH AND NUTRITION TRANSITION: AN EMPIRICAL ANALYSIS COMPARING DEMAND ELASTICITIES FOR FOODS IN CHINA AND RUSSIA



Christine Burggraf, Lena Kuhn, Qiran Zhao, Thomas Glauben and Ramona TeuberLeibniz Institute of Agricultural Development in Transition Economies

Paper prepared for presentation at the EAAE 2014 Congress ‘Agri-Food and Rural Innovations for Healthier Societies’ August 26 to 29, 2014 Ljubljana, Slovenia

Abstract: Given the heterogeneity between Russia and China, we analyze the extent to which income growth as a major driver of nutrition transition has a significant effect on the consumption of different food aggregates. We estimate expenditure elasticities of nine different food aggregates for China and Russian, applying a Quadratic Almost Ideal Demand model. Our results indicate that future income growth in China and Russia will continue to increase meat consumption. Despite being a positive signal for problems of malnutrition in China, this trend might further increase the incidence of chronic diseases with negative cost effects on public health care systems.

Link: http://ageconsearch.umn.edu/bitstream/182828/2/Economic_growth_and_nutrition_transition_20140606.pdf