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THE SOCIO-ECONOMIC VARIABLES INFLUENCING HOUSEHOLD CONSUMPTION IN THE RURAL FARMERS LEVEL
Corresponding Author(s) : Abdul Bashir
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose of the study: This study investigated the socio-economic effect on household consumption of rural farmers in South Sumatera, Indonesia.
Methodology: The data used were primary data obtained from an in-depth survey of 300 farmer households. The analysis method used a quantitative approach with a polynomial regression model.
Main Findings: The finding showed that from the four independent variables estimated, there are three which have a significant effect on farmer household consumption: household income, number of family members, and education level of the household head. Despite changes in consumption patterns between food and non-food, the process of food diversification is an important task for the government, especially to reduce dependence on rice consumption.
Applications of this study: This study was conducted in South Sumatra, Indonesia in the field of agricultural economics. This study can support development planning policies in the food sector in South Sumatra.
Novelty/Originality of this study: This study focus as efforts on the policy of diversifying food consumption needs to be synergized with the development of local resource-based food products.
Keywords
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- Aigner-walder, B., & Döring, T. (2012). The effect of population aging on private consumption: A Simulation for Austria based on household data up to 2050. Eurasian Economic Review, 2(1), 63–80.
- Ariani, M., & Purwati, H. (2015). Pola Pengeluaran Dan Konsumsi Rumah Tangga Perdesaan: Komparasi Antartipe Agroekosistem. In Panel Petani Nasional: Rekonstruksi Agenda Peningkatan Kesejahteraan Petani (pp. 183–199). Jakarta: Badan Penelitian dan Pengembangan Pertanian.
- Azwardi, Bashir, A., Adam, M., & Marwa, T. (2016). The effect of subsidy policy on food security of rice in Indonesia. International Journal of Applied Business and Economic Research, 14(13), 9009–9022.
- Bashir, A., Susetyo, D., Azwardi, A., & Suhel, S. (2018). The Relationship between Economic Growth, Human Capital, and Agriculture Sector: Empirical Evidence from Indonesia. International Journal of Food and Agricultural Economics, 6(4), 35–52.
- Bashir, A., & Yuliana, S. (2018). Identifying Factors Influencing Rice Production and Consumption in Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 19(2), 172–185. https://doi.org/10.23917/jep.v19i2.5939 DOI: https://doi.org/10.23917/jep.v19i2.5939
- Bick, A., & Choi, S. (2013). Revisiting the effect of household size on consumption over the life-cycle. Journal of Economic Dynamics and Control, 37(12), 2998–3011. https://doi.org/10.1016/j.jedc.2013.08.006 DOI: https://doi.org/10.1016/j.jedc.2013.08.006
- Branson, W. H. (2005). Macroeconomics : Theory and Policy (3rd editio). New Delhi, India: Affiliated East-west Press Pvt Ltd.
- Davis, J. B. (2003). The Theory of the Individual in Economics: Identity and Value. (J. B. Davis, Ed.), Routledge. New York: Routledge Taylor & Francis Group. https://doi.org/10.4324/9780203457689 DOI: https://doi.org/10.4324/9780203457689
- Du, B., Zhen, L., De Groot, R., Long, X., Cao, X., Wu, R., … Wang, C. (2015). Changing food consumption patterns and impact on water resources in the fragile grassland of northern China. Sustainability (Switzerland), 7(5), 5628–5647. https://doi.org/10.3390/su7055628 DOI: https://doi.org/10.3390/su7055628
- Dynan, K. E., Edelberg, W., & Palumbo, M. G. (2009). The effects of population aging on the relationship between aggregate consumption, saving, and income. American Economic Review, 99(2), 380–386. https://doi.org/10.1257/aer.99.2.380 DOI: https://doi.org/10.1257/aer.99.2.380
- Faharuddin, Mulyana, A., Yamin, M., & Yunita. (2015). Analisis Pola Konsumsi Pangan di Sumatera Selatan 2013: Pendekatan Quadratic Almost Ideal Demand System. Agro Ekonomi, 33(2), 121–140. https://doi.org/10.21082/jae.v33n2.2015.121-140 DOI: https://doi.org/10.21082/jae.v33n2.2015.121-140
- Firdaus, N., & Cahyono, B. D. (2017). How food consumption pattern and dietary diversity describe food security: evidence from Yogyakarta and East Nusa Tenggara. Jurnal Ekonomi Dan Pembangunan, 25(1), 27–38. https://doi.org/10.14203/JEP.25.1.2017.27-38 DOI: https://doi.org/10.14203/JEP.25.1.2017.27-38
- Grünberger, K. (2014). Estimating food consumption patterns by reconciling Food Balance Sheets and Household Budget Surveys (No. 14–08). ESS Working Paper. Rome. Retrieved from http://www.fao.org/3/a-i4315e.pdf
- Ismaiel, S., Kahtani, S. Al, Adgaba, N., Al-Ghamdi, A. A., & Zulail, A. (2014). Factors That Affect Consumption Patterns and Market Demands for Honey in the Kingdom of Saudi Arabia. Food and Nutrition Sciences, 5(17), 1725–1737. https://doi.org/10.4236/fns.2014.517186 DOI: https://doi.org/10.4236/fns.2014.517186
- Jappelli, T., & Pistaferri, L. (2010). The Consumption Response to Income Changes. The Annual Review of Economics, 2, 479–507. https://doi.org/10.1146/annurev.economics.050708.142933 DOI: https://doi.org/10.1146/annurev.economics.050708.142933
- Keister, L. A., Benton, R., & Moody, J. (2016). Lifestyles through Expenditures: A Case-Based Approach to Saving. Sociol Sci, 3, 650–684. https://doi.org/10.15195/v3.a28 DOI: https://doi.org/10.15195/v3.a28
- Koc, B., & Ceylan, M. (2012). The effects of the socialâ€economic status of consumers on purchasing, behaving and attitude to food products. British Food Journal, 114(5), 728–742. https://doi.org/10.1108/00070701211230006 DOI: https://doi.org/10.1108/00070701211230006
- Krueger, D., & Perri, F. (2011). How do Households Respond to Income Shocks? Evidence and Theory. In Society for Economic Dynamics (pp. 1–37). Deidesheim: Society for Economic Dynamics. https://doi.org/10.1016/j.arcped.2009.07.013 DOI: https://doi.org/10.1016/j.arcped.2009.07.013
- Kumar, A., Kumar, P., & Joshi, P. K. (2017). Food Consumption Pattern and Dietary Diversity in Nepal: Implications for Nutrition Security. Indian Journal of Human Development, 10(3), 1–17. https://doi.org/10.1177/0973703017698899 DOI: https://doi.org/10.1177/0973703017698899
- Marwa, T., Rostartina, E., & Abukosim, A. (2009). Faktor-Faktor yang Mempengaruhi Stok Beras di Sumatera Selatan. Jurnal Ekonomi Pembangunan, 7(1), 14–24.
- Mayasari, D., Satria, D., & Noor, I. (2018). The Pattern of Food Consumption Based on HDI in East Java. Jurnal Ekonomi Dan Pembangunan Indonesia, 18(2), 191–213. https://doi.org/10.21002/jepi.v18i2.801 DOI: https://doi.org/10.21002/jepi.v18i2.801
- Modigliani, F., & Cao, S. L. (2004). The Chinese saving puzzle and the lifecycle hypothesis. Journal of Economic Literature, 42(1), 145–170. https://doi.org/10.1257/002205104773558074 DOI: https://doi.org/10.1257/002205104773558074
- Musyoka, M. P., Kavoi, M. M., & Omiti, J. M. (2014). Food consumption patterns and distributional welfare impact of import tariff reduction on cereals in Kenya. African Journal of Agriculture and Resource Economics, 9(3), 183–199.
- Pindyck, R. S., & Rubinfeld, D. L. (2013). Microeconomics (8th ed.). New York: Pearson Education, Inc. https://doi.org/10.1002/elan.200900299 DOI: https://doi.org/10.1002/elan.200900299
- Rizov, M., Cupak, A., & Pokrivcak, J. (2015). Food security and household consumption patterns in Slovakia. International Conference of Agricultural Economics (pp. 1–36). Milan: Agriculture in An Interconnected World. https://doi.org/10.2139/ssrn.2557372 DOI: https://doi.org/10.2139/ssrn.2557372
- Sánchez, M., Beriain, M. J., & Carr, T. R. (2012). Socio-economic factors affecting consumer behavior for the United States and Spanish beef under different information scenarios. Food Quality and Preference, 24, 30–39. https://doi.org/10.1016/j.foodqual.2011.08.008 DOI: https://doi.org/10.1016/j.foodqual.2011.08.008
- Soebyakto, B. B., & Bashir, A. (2017). The Effect of Short-Term Aggregate Demand in the Indonesian Economy : The Era of ASEAN Economic Community. Journal of Applied Economic Sciences, XII(2(48)), 594–605.
- Streeter, J. L. (2017). Socioeconomic Factors Affecting Food Consumption and Nutrition in China: Empirical Evidence During the 1989 – 2009 Period. The Chinese Economy, 50(May), 168–192. https://doi.org/10.1080/10971475.2017.1297653 DOI: https://doi.org/10.1080/10971475.2017.1297653
- Worsley, A., Blaschea, R., Ball, K., & Crawford, D. (2004). The relationship between education and food consumption in the 1995 Australian National Nutrition Survey. Public Health Nutrition, 7(5), 649–663. https://doi.org/10.1079/PHN2003577 DOI: https://doi.org/10.1079/PHN2003577
- Young, T., & Hamdok, A. A. (1994). Effects of household size and composition on consumption in rural households in Matabeleland South, Zimbabwe. Agricultural Economics, 11(2–3), 335–343. https://doi.org/10.1016/0169-5150(94)00007-7 DOI: https://doi.org/10.1016/0169-5150(94)00007-7
References
Aigner-walder, B., & Döring, T. (2012). The effect of population aging on private consumption: A Simulation for Austria based on household data up to 2050. Eurasian Economic Review, 2(1), 63–80.
Ariani, M., & Purwati, H. (2015). Pola Pengeluaran Dan Konsumsi Rumah Tangga Perdesaan: Komparasi Antartipe Agroekosistem. In Panel Petani Nasional: Rekonstruksi Agenda Peningkatan Kesejahteraan Petani (pp. 183–199). Jakarta: Badan Penelitian dan Pengembangan Pertanian.
Azwardi, Bashir, A., Adam, M., & Marwa, T. (2016). The effect of subsidy policy on food security of rice in Indonesia. International Journal of Applied Business and Economic Research, 14(13), 9009–9022.
Bashir, A., Susetyo, D., Azwardi, A., & Suhel, S. (2018). The Relationship between Economic Growth, Human Capital, and Agriculture Sector: Empirical Evidence from Indonesia. International Journal of Food and Agricultural Economics, 6(4), 35–52.
Bashir, A., & Yuliana, S. (2018). Identifying Factors Influencing Rice Production and Consumption in Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 19(2), 172–185. https://doi.org/10.23917/jep.v19i2.5939 DOI: https://doi.org/10.23917/jep.v19i2.5939
Bick, A., & Choi, S. (2013). Revisiting the effect of household size on consumption over the life-cycle. Journal of Economic Dynamics and Control, 37(12), 2998–3011. https://doi.org/10.1016/j.jedc.2013.08.006 DOI: https://doi.org/10.1016/j.jedc.2013.08.006
Branson, W. H. (2005). Macroeconomics : Theory and Policy (3rd editio). New Delhi, India: Affiliated East-west Press Pvt Ltd.
Davis, J. B. (2003). The Theory of the Individual in Economics: Identity and Value. (J. B. Davis, Ed.), Routledge. New York: Routledge Taylor & Francis Group. https://doi.org/10.4324/9780203457689 DOI: https://doi.org/10.4324/9780203457689
Du, B., Zhen, L., De Groot, R., Long, X., Cao, X., Wu, R., … Wang, C. (2015). Changing food consumption patterns and impact on water resources in the fragile grassland of northern China. Sustainability (Switzerland), 7(5), 5628–5647. https://doi.org/10.3390/su7055628 DOI: https://doi.org/10.3390/su7055628
Dynan, K. E., Edelberg, W., & Palumbo, M. G. (2009). The effects of population aging on the relationship between aggregate consumption, saving, and income. American Economic Review, 99(2), 380–386. https://doi.org/10.1257/aer.99.2.380 DOI: https://doi.org/10.1257/aer.99.2.380
Faharuddin, Mulyana, A., Yamin, M., & Yunita. (2015). Analisis Pola Konsumsi Pangan di Sumatera Selatan 2013: Pendekatan Quadratic Almost Ideal Demand System. Agro Ekonomi, 33(2), 121–140. https://doi.org/10.21082/jae.v33n2.2015.121-140 DOI: https://doi.org/10.21082/jae.v33n2.2015.121-140
Firdaus, N., & Cahyono, B. D. (2017). How food consumption pattern and dietary diversity describe food security: evidence from Yogyakarta and East Nusa Tenggara. Jurnal Ekonomi Dan Pembangunan, 25(1), 27–38. https://doi.org/10.14203/JEP.25.1.2017.27-38 DOI: https://doi.org/10.14203/JEP.25.1.2017.27-38
Grünberger, K. (2014). Estimating food consumption patterns by reconciling Food Balance Sheets and Household Budget Surveys (No. 14–08). ESS Working Paper. Rome. Retrieved from http://www.fao.org/3/a-i4315e.pdf
Ismaiel, S., Kahtani, S. Al, Adgaba, N., Al-Ghamdi, A. A., & Zulail, A. (2014). Factors That Affect Consumption Patterns and Market Demands for Honey in the Kingdom of Saudi Arabia. Food and Nutrition Sciences, 5(17), 1725–1737. https://doi.org/10.4236/fns.2014.517186 DOI: https://doi.org/10.4236/fns.2014.517186
Jappelli, T., & Pistaferri, L. (2010). The Consumption Response to Income Changes. The Annual Review of Economics, 2, 479–507. https://doi.org/10.1146/annurev.economics.050708.142933 DOI: https://doi.org/10.1146/annurev.economics.050708.142933
Keister, L. A., Benton, R., & Moody, J. (2016). Lifestyles through Expenditures: A Case-Based Approach to Saving. Sociol Sci, 3, 650–684. https://doi.org/10.15195/v3.a28 DOI: https://doi.org/10.15195/v3.a28
Koc, B., & Ceylan, M. (2012). The effects of the socialâ€economic status of consumers on purchasing, behaving and attitude to food products. British Food Journal, 114(5), 728–742. https://doi.org/10.1108/00070701211230006 DOI: https://doi.org/10.1108/00070701211230006
Krueger, D., & Perri, F. (2011). How do Households Respond to Income Shocks? Evidence and Theory. In Society for Economic Dynamics (pp. 1–37). Deidesheim: Society for Economic Dynamics. https://doi.org/10.1016/j.arcped.2009.07.013 DOI: https://doi.org/10.1016/j.arcped.2009.07.013
Kumar, A., Kumar, P., & Joshi, P. K. (2017). Food Consumption Pattern and Dietary Diversity in Nepal: Implications for Nutrition Security. Indian Journal of Human Development, 10(3), 1–17. https://doi.org/10.1177/0973703017698899 DOI: https://doi.org/10.1177/0973703017698899
Marwa, T., Rostartina, E., & Abukosim, A. (2009). Faktor-Faktor yang Mempengaruhi Stok Beras di Sumatera Selatan. Jurnal Ekonomi Pembangunan, 7(1), 14–24.
Mayasari, D., Satria, D., & Noor, I. (2018). The Pattern of Food Consumption Based on HDI in East Java. Jurnal Ekonomi Dan Pembangunan Indonesia, 18(2), 191–213. https://doi.org/10.21002/jepi.v18i2.801 DOI: https://doi.org/10.21002/jepi.v18i2.801
Modigliani, F., & Cao, S. L. (2004). The Chinese saving puzzle and the lifecycle hypothesis. Journal of Economic Literature, 42(1), 145–170. https://doi.org/10.1257/002205104773558074 DOI: https://doi.org/10.1257/002205104773558074
Musyoka, M. P., Kavoi, M. M., & Omiti, J. M. (2014). Food consumption patterns and distributional welfare impact of import tariff reduction on cereals in Kenya. African Journal of Agriculture and Resource Economics, 9(3), 183–199.
Pindyck, R. S., & Rubinfeld, D. L. (2013). Microeconomics (8th ed.). New York: Pearson Education, Inc. https://doi.org/10.1002/elan.200900299 DOI: https://doi.org/10.1002/elan.200900299
Rizov, M., Cupak, A., & Pokrivcak, J. (2015). Food security and household consumption patterns in Slovakia. International Conference of Agricultural Economics (pp. 1–36). Milan: Agriculture in An Interconnected World. https://doi.org/10.2139/ssrn.2557372 DOI: https://doi.org/10.2139/ssrn.2557372
Sánchez, M., Beriain, M. J., & Carr, T. R. (2012). Socio-economic factors affecting consumer behavior for the United States and Spanish beef under different information scenarios. Food Quality and Preference, 24, 30–39. https://doi.org/10.1016/j.foodqual.2011.08.008 DOI: https://doi.org/10.1016/j.foodqual.2011.08.008
Soebyakto, B. B., & Bashir, A. (2017). The Effect of Short-Term Aggregate Demand in the Indonesian Economy : The Era of ASEAN Economic Community. Journal of Applied Economic Sciences, XII(2(48)), 594–605.
Streeter, J. L. (2017). Socioeconomic Factors Affecting Food Consumption and Nutrition in China: Empirical Evidence During the 1989 – 2009 Period. The Chinese Economy, 50(May), 168–192. https://doi.org/10.1080/10971475.2017.1297653 DOI: https://doi.org/10.1080/10971475.2017.1297653
Worsley, A., Blaschea, R., Ball, K., & Crawford, D. (2004). The relationship between education and food consumption in the 1995 Australian National Nutrition Survey. Public Health Nutrition, 7(5), 649–663. https://doi.org/10.1079/PHN2003577 DOI: https://doi.org/10.1079/PHN2003577
Young, T., & Hamdok, A. A. (1994). Effects of household size and composition on consumption in rural households in Matabeleland South, Zimbabwe. Agricultural Economics, 11(2–3), 335–343. https://doi.org/10.1016/0169-5150(94)00007-7 DOI: https://doi.org/10.1016/0169-5150(94)00007-7