COMPARATIVE ECONOMIC STUDY OF CONSUMPTIVE EXPENDITURE ON FRUIT IN EGYPT

Abstract

Fruit's groups are considered one of the main food groups due to the numerous benefits for human health. The current research seeks to find answers regarding the impacts of changes in the prices and per capita income on Egyptian consumers. Accordingly, the research aims to study the main factors affecting expenditure on fruit's groups and measuring elasticities of expenditure on fruit's groups to assess its importance to consumers. Results showed that annual per capita expenditure on fruit's groups accounted for 6.8% and 6.4% of the average annual expenditure on food and drinks at the country level in 2010/2011 and 2014/2015, respectively. Results also showed variances in average per capita expenditure on fruit's group between expenditure categories. It was also found that per capita average expenditure on fruit's groups' group declines as family size increases, where variances exist between different family sizes in terms of per capita average expenditure on fruit's groups. In addition, results showed clear variances between expenditure on fruit's groups by household heads with different levels of education in rural Egypt compared to urban Egypt during 2010/2011 and 2014/2015. It was found that differences in per capita average share of expenditure on fruit's groups group decline as household head's economic activity differs, and as area of residence of household head differs (rural and urban). Results indicated variances between expenditure on fruits' group in urban and rural Egypt as household head's level of education differs, and that per capita expenditure on fruit's group greatly changed between 2010/2011 and 2014/2015 according to household head's occupation. Finally, estimating elasticities of expenditure on fruits indicated that they are semi-necessary goods at the level of urban and rural Egypt in 2014/2015, while proved necessary goods in rural Egypt during 2010/2011. In the light of the achieved results, the research recommended dedicating more support to education, encouraging foreign investment to create job opportunities for the unemployed and to raise the standard of living for society individuals, and promoting media programs that aim to raise awareness about the health benefits of eating proper quantities of fruits per day, especially in rural Egypt.