Rural Household Expenditure Research Articles

A contribution to the determinants of annual household education expenditure in Ghana

This study uses household-level data from the sixth round of the Ghana Living Standards Survey 2013–2014, covering 16,772 household, and using the Tobit model, focuses on factors driving annual household expenditure on education in Ghana. The key combined results are that Ghanaian households spend an average of 52.1 percent of household expenditure on education on basic education and that household income is inversely proportional to annual household expenditure on education and the estimate is not statistically significant. Educated head of household, family size, basic, secondary, post-secondary, and tertiary studies expenditures are positively correlated with annual household expenditures on education and were all statistically significant in determining annual household expenditures on education, with a priori indications for these variables expected. The rural household expenditure, male-headed household and the age of the household head variables were negatively correlated with the annual household expenditure on education. From a pro-poor education policy perspective, the Ghanaian government should increase spending on basic education, taking into account its impact on economic growth and national development, in order to reduce high household spending, tax breaks for household with larger family sizes, and reduce inequality in access to education for rural residents.

RURAL HOUSEHOLD FOOD SECURITY IN KUDUS CENTRAL JAVA

Evidence of previous studies indicated that food security is a common problem in most areas of the world. This study aims to determine the proportion of food consumption expenditure on total of rural household expenditure, rural household food security conditions, and factors influencing food security of rural households in Kudus District. To estimate the factors influencing food security, a series of models is created. Pooled least square regression is used to estimate the factors. This study indicate that the average proportion of food expenditure on total household expenditure is 56.4%. Food vulnerability is the highest category of food security conditions of rural household in Kudus District which reached an average level of energy consumption is 113,42% with food expenditure proportion equal to 73,15%. Based on analysis there are eight factors from ten factors used by researchers have influenced household food security in terms of energy consumption, while there are seven factors that affecting food security seen from household protein consumption. The analysis of the factors influencing food security in rural household in Kudus District shows that side jobs have two contradictory impacts reviewed from energy and protein consumption. This research also finds out that eggs real price does not have any influence toward rural household food security in Kudus District.

Impacts of environmental conservation programs on regional economic structural change in Guizhou, China, from 2002 to 2012: an input\u2013output analysis

In 1999, the Grain to Green Program (GTGP) was initiated in China as payment of ecosystem service and the largest land conservation program. This paper evaluates the impact of this conservation program on the regional economic structural change in Guizhou Province. We generate the agriculture-based regional input–output tables of 2002, 2007 and 2012. The production and employment inducements are calculated by using the Leontief inverse matrix. The key sectors are figured out by applying the linkage analysis. The RAS analysis is used for categorizing sectors as the potentially growing or shrinking industry. The results indicate the undesired effect of the GTGP and the EMP on the upstream supplier and downstream industries for agricultural production. Rural household expenditure was changed by the subsidies and shows negative effect on agricultural production. In the second stage of policy implementation, we found the depression of rural economies. The shrinking potential of the rural sector forced the further cutback of these upstream and downstream industries. The surplus rural labors find difficulties in searching for jobs in the local labor market and should move out of this region. From these results, we suggest the local government should reconsider the economic influence of the GTGP and EMP rather than emphasize the environmental issues and intend to improve rural welfare.

The Impact of Tobacco Consumption on Rural Household Expenditure and Self-rated Health Among Rural Household Members in China

ABSTRACTObjectives: To estimate how tobacco consumption affects household expenditure on other goods and services in rural China and to assess the tobacco consumption affects self-rated health among rural household members in China. Methods: A Seemingly Unrelated Regression was used to assess the impact of tobacco consumption on rural household expenditure. To detect tobacco consumption causing heterogeneity in self-rated health among adults in rural China, this study employed a random effects generalized ordered probit model. 2010–2014 China Family Panel Studies was used for the analysis. The data set included 3,611 households and 10,610 adults in each wave. Results: Tobacco consumption households assign significantly lower budget shares to food, health care, dress, and education in rural China. Moreover, self-rated health factor has a significantly positive coefficient with respect to non-smokers and ex-smokers, that is, when the individuals is a non-smoker or ex-smoker, he/ she will be more likely to report his/her health status as positive. Conclusions: The first analysis showed that tobacco consumption crowds out expenditures on food, dress, health care, and education for rural households in China, and the second analysis indicated that non-smokers and ex-smokers are more likely to report their health status as better compared with last year. The results of the present study revealed that Chinese policymakers might consider controlling tobacco consumption since tobacco control can improve not only rural household welfare but also rural household members' health status. Therefore, the tobacco tax policy and brief clinical interventions by the doctor should be implemented in rural China.

Migration and rural household expenditures: A case study from Vietnam

Understanding the impact of migration on rural household expenditures is important since household expenditure patterns can demonstrate whether remittances are used for consumption or for investment. This paper investigates the effects of rural–urban migration on consumption expenditure patterns of rural households of Vietnam. The econometric analysis of a 3-year panel data set of about 2000 households (about 6000 observations) shows that rural migrant households increase their overall expenditures. Migrant households without remittances spend more on food, health care and other non-food items, but less on education of their children, while migrant households with remittances spend more on housing and other non-food items. The results indicate that migration and remittances bring a good opportunity for rural industries and services such as construction and health care. However, migration and remittances do not influence rural education. To promote rural development in the long-run, we suggest that other financial sources should be established to enhance rural education for improving human capital.

The impacts of social pension on rural household expenditure: evidence from China

In 2009, China began to implement a new social pension scheme in rural areas. We examine the impacts of this social pension on two main components of rural household expenditure, consumption and agricultural production investment. Our findings show that on average, rural households increase consumption by 1–3% and agricultural investment by as high as 6–9% in pilot counties. Further estimations reveal that the pension mainly affects the households with old-aged members and the poorer families, and that the saving rate hasn’t been changed by the pension, which support more the contingent income than the life-cycle hypothesis. We also find that among various types of expenditures, the most dramatic increases have occurred in food consumption and operational inputs on agricultural production.

Impact of Income Inequality on Consumption Expenditures Inequality: A Case Study of Iranian Households, 1966-2008

This paper examines the relationship between income inequality and consumption inequality. For this purpose, we use data of urban and rural household's expenditures and incomes from 1966 to 2007 extracted from Iranian household’s budget surveys. We examine how the consumption inequality is related to the corresponding income inequality. Results indicate that income inequality has significant impact on consumption expenditures inequality. And all of the income fluctuations do not transmit in the consumption expenditures composition. So, the magnitude of consumption inequality is less than the magnitude of income inequality.

Inequality in the Distribution of Household Expenditure in Rural Nigeria: A Decomposition Analysis

This study, examines inequality in expenditure among rural households in Nigeria and then investigates its factors and forces by decomposing the inequality into within group and between group components. Our findings indicate that factors such as age, gender, and education level of the household head are important in explaining, rural household expenditure inequality profile in the country. We however found that most inequality exist within group and not much of differences in group explain appreciable levels of inequality, in Nigeria except for educational attainment of household head and geopolitical zone that the household belongs. This thus calls for thus policies that will increase educational opportunity for all citizens as well us policies lo reduce inter geopolitical zone access lo opportunities.

Commercialization of Food Consumption in Rural China

Rural households in China have traditionally consumed food mostly grown on their own farms. While they continue to rely on self-produced grains, vegetables, meats, and eggs for a large portion of their diet, rural households are now purchasing more of their food as they enter the mainstream of the Chinese economy. Cash purchases of food by rural Chinese households increased 7.4 percent per year from 1994 to 2003. Consumption has shifted from self-produced to purchased food at a rate faster than can be explained by income growth or changes in other household characteristics. The move away from self-produced food is associated with lower consumption of staple grains, the most important self-produced food in rural Chinese diets. Food consumed away from home is one of the fastest growing categories of rural household expenditures, doubling in budget share from 1995 to 2001. Commercialization of food consumption is diversifying Chinese diets, broadening food markets, and creating new opportunities for retailers and product distributors.

Migrants and Housing Investments: Theory and Evidence from Nigeria

The dominance of housing may reflect limitations in the menu of investment choices available to migrants in the country of origin. In many developing countries individuals face relatively few savings opportunities where productive assets (such as land farm assets) are associated with high risks and/or low rates of return. Housing investments offer unique advantages in that they are durable highly visible and associated with low risk and monitoring requirements. However there are some important drawbacks associated with housing investments. In particular where resale and rental markets for housing are not well developed migrants housing assets may be relatively illiquid and irreversible. In the next section I provide some background on general patterns of investment behavior among migrants. Here the evidence on housing investments is discussed for a rich set of migrant sending and receiving countries. In Section III I develop the conceptual framework for understanding migrants housing investment decisions. Section IV provides a description of the data sources. Section V outlines the empirical strategy. In Section VI I discuss the empirical findings. Section VII presents conclusions. (excerpt)

ANALYSIS OF RURAL HOUSEHOLD CONSUMPTION EXPENDITURE IN SOUTH AFRICA: THE CASE OF FOOD PLOT HOLDERS IN TYEFU IRRIGATION SCHEME IN THE EASTERN CAPE PROVINCE / ANALISE VAN VERBRUIKSBESTEDING VAN LANDELIKE HUISHOUDINGS IN SUID-AFRIKA: 'N GEVALLESTUDIE VAN KLEINBOERE IN TYEFU BESPROEIINGSKEMA IN DIE OOSKAAP PROVINSIE

Policy formulation in relation to rural development requires research on rural household consumption behaviour and patterns. In this paper research implications of consumption function theory in relation to rural household expenditures are briefly outlined and results of a cross-section analysis of seven expenditure categories of food plot holders at Tyefu Irrigation Scheme are reported. Consumption function parameters are estimated by ordinary least square method of regression of farm account data. The analysis reveals that the sampled food plot holders have a marginal propensity to consume of (0.349) as well as average propensity to consume of (0.652). Family characteristics (used as explanatory variables) such as age distribution and family size vary in their ability to explain expenditure patterns depending upon types of commodity. Further research will help to rigorously assess the impact of additional forces such as education, location, farm assets, etc. upon the standard of living of farm people.

Remittances, Investment, and Rural Asset Accumulation in Pakistan

Internal and external migration can have a profound impact on rural asset accumulation in most Third World countries. In many African, Asian, and Latin American countries the bulk of the labor force still lives in the countryside. In these countries the large difference between expected rural and urban or foreign incomes, coupled with the risk-reducing functions of migration, causes workers to migrate, either to urban centers or abroad. The remittances—defined as the money or goods sent home by migrant workers—can have a large effect on the accumulation of assets in these rural areas. For example, an inflow of external remittances to rural households at the upper end of the income distribution could increase land accumulation by the rich. In general terms the effect of remittances on asset accumulation in a rural Third World economy depends on answers to three questions: (a) Who migrates? (b) How much net income do migrants remit? and (c) What are the marginal effects of these remittances on household consumption and investment? Because of data limitations, in this article I propose to examine only the first and the third questions; other researchers have addressed the second issue. In the past surprisingly little attention has been focused on the question of the marginal effects of remittances on household consumption and investment in the rural Third World. This inattention has been due to three considerable methodological problems. The first is fungibility; because remittances are like any other form of cash income, it is difficult to associate this income source with any particular changes in household expenditure behavior. The second problem relates to the multiple-round effects of remittances on the local economy. For example, an inflow of remittances into a rural area may lead to a surge in expenditures in housing, which may, in turn, create new income and employment opportunities for the poor and unskilled. Unfortunately, however, few studies have