food consumption in rural china: preliminary results frommams.rmit.edu.au/1i9r574vbsgp.pdf ·...
TRANSCRIPT
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Food Consumption in Rural China: Preliminary Results from
Household Survey Data 1
Zhang-Yue Zhou a,
The University of Sydney
Yan-Rui Wu b
The University of Western Australia
Wei-Ming Tian c
China Agricultural University
1 Revised version of a paper presented at the International Conference on “China in the New Era: Strategies for Sustainable Economic Growth and Business Responses to Regional Demands and Global Opportunities”, held in RMIT University, Melbourne, Australia, 2-3 October 2003. We wish to thank the delegates of the Conference and the referees for their useful comments. This paper presents some preliminary results from our study and further work is being carried out which will be reported in a later stage. We welcome any further comments to help us improve our work. a,b,c Correspondence to: Zhang-Yue Zhoua Yan-Rui Wu b
Asian Agribusiness Research Centre Department of Economics
The University of Sydney The University of Western Australia
Orange, NSW, 2800 Perth, WA., 6009
AUSTRALIA AUSTRALIA
Email: [email protected] Email: [email protected]
Wei-Ming Tian c
College of Economics and Management
China Agricultural University
Beijing 100094
P.R. CHINA
Email: [email protected]
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 1 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Abstract
The increase in consumer income in developing countries induces changes in the composition
of food consumption. Such changes have important implications for policy makers and for
food marketers. For a large developing country such as China, changes in food consumption
have even much greater implications, not only for China itself but also for the rest of the
world, due to the sheer size of its population. As a result of its rapid economic growth and the
resulting increase in consumer income, expansion and diversification of food consumption in
China have been most notable in the past two decades. It is believed that there is
considerable latitude for food consumption growth in China and China will become one of
the fastest-growing markets for food products in the coming years. Using household-level
survey data of representative provinces, this study examines the changes in the proportion of
food consumption expenditure out of total household expenditure and identifies patterns of
change in food consumption in rural China by region and by income group. Major factors
that affect consumption behaviour in rural China are investigated. Implications of the
changes in China’s rural food consumption are discussed.
1. Introduction
China’s population is reaching 1.3 billion. Feeding so many mouths has always been a
challenge for the Chinese government. First, the large population needs to have an adequate
amount of food to eat. Then, after they have had enough to eat, they may want to have better
and more nutritious food to eat. Next, they may want to do less to prepare their food and thus
they may want to consume more processed or semi-processed food. Indeed, there have been
notable changes in food consumption by Chinese consumers in the recent times. For example,
during the two decades between 1981 and 2001, direct consumption of feedgrains at the
national level has dropped by 7% in rural areas and 45% in urban areas. On the other hand,
the consumption of meat, eggs, and aquatic products in rural areas has increased by 85%,
278%, and 222%, respectively. For urban areas, the increases are 29%, 113% and 69%,
respectively. Recent studies have also shown that consumer demand for processed food is on
the increase (Yuan 2001, Wang and Yang 2003). Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 2 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Given the sheer size of the Chinese food market, changes in food consumption in China have
important implications for the agri-food industries not only for China but also for many other
countries that have an interest in supplying to the Chinese market, such as Australia. As such,
the recent developments in China’s food consumption have attracted much attention from
researchers. However, despite the efforts of earlier studies, there are still some issues and
questions that remain untouched or unanswered. This paper adds to our understanding of the
dynamics of China’s rural food consumption and their implications.2
In the next section, we review earlier studies. Section 3 describes the data used in this study.
Section 4 presents the results of preliminary analyses of the data. The findings are discussed
in Section 5 with concluding comments.
2. Review of Literature
A number of factors can cause changes in household consumption. They can be economical
(e.g., income increase), social (e.g., changes in dietary culture due to urbanisation and foreign
influences), market development that makes new foods available, and health concerns that
lead to the preference towards, or deliberate avoidance of, some foods. Among these factors,
however, income is seen to be the most influential one affecting household food
consumption. Studies show that the levels of income do affect the composition of food
consumption (Regmi et al. 2001; Jones et al. 2003). The increase in consumer income in fast
growing developing countries, such as China and Malaysia, tends to induce drastic changes in
the composition of food consumption (Cranfield et al. 1998, Coyle et al. 1998, Regmi 2001,
USDA 2002, Ishida, Law and Aita 2003).
Changes in food consumption in developing countries have important implications for policy
makers in regard to a country’s food industry strategic planning and for food suppliers in
terms of market development. For a large developing country such as China, changes in food
consumption have even much greater implications, not only for China itself but also for the
rest of the world, due to the sheer size of its population. As a result of the rapid economic
2 Chinese rural and urban residents are two distinct consumer groups. It is useful to analyse the consumption dynamics of the two groups separately. We will discuss food consumption in urban China in another paper. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 3 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
growth and the resulting increase in consumer income in the past two decades, expansion and
diversification of food consumption have been notable in China. It is believed that there is
considerable latitude for food consumption growth in China and China will become one of
the fastest-growing markets for food products in the coming years, due to its high prospective
rates of economic growth (Wu 1999, p. 24). Because of the significant and wide implications
of China’s food consumption changes, researchers from both within and outside China have
paid increased attention to examining this issue from various perspectives.
A number of studies have used the popular Almost Ideal Demand System (AIDS) to identify
factors that affect consumption behaviours and to derive parameters such as price and income
elasticities; for example, Halbrendt and Tuan (1994), Fan, Wailes and Cramer (1995), Wu
and Li (1995), Huang and Rozelle (1998). Wan (1998), using a nonparametric framework
developed by Sakong and Hayes (1993), examines taste changes in food demand in rural
China. Focusing on the structural change in the impact of income on food consumption in
China, Guo, Mroz and Popkin (2000) followed a two-step process proposed by Haines,
Guilkey and Popkin (1988). To identify determinants of expenditures on food for at-home
consumption, Gould (2002) uses an econometric model specification that consists of (1) the
system of share equations in which the shares are based on at-home food expenditures and (2)
an auxiliary at-home food expenditure function. When reliable price information is
unavailable, Engel functions may be used (Wu 1999).
Obtaining data for China’s consumption analyses used to be a challenge. This situation seems
to have been improved in recent years although gaining quality data remains to be a major
challenge. In the earlier attempts, researchers often resorted to cross-sectional data (e.g.,
Halbrendt and Tuan 1994, rural household survey data collected by China’s State Statistical
Bureau (SSB), 2560 households of Guangdong province for 1990; Huang and Rozelle 1998,
433 rural household surveys of SSB in Hebei province for 1993) or highly aggregated data
(e.g., Fan et al. 1995, provincial aggregates for 1982-90; Wu and Li 1995, aggregated data
from 33 cities for 1990; Wan 1998, provincial aggregates for 1982-90). In the more recent
studies, Guo et al. (2000) used the data (for 1989, 1991, and 1993) from the China Health and
Nutrition Survey data; the survey is conducted biannually and covers eight provinces with a
little over 3000 households. On the other hand, Gould (2002) managed to secure three
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 4 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
consecutive years of urban household survey data (1995-97) from SSB for Jiangsu, Shandong
and Guangdong provinces.
Earlier studies have contributed importantly to the understanding of the consumption
behaviours in China. Most of them generated important parameters such as income and price
elasticities of demand for various food items. Some provided other useful observations such
as (1) demand is price-inelastic for most commonly consumed food items; (2) there is a
tendency to shift away from rice to wheat consumption; and (3) Chinese consumers will
consume more meats as their income increases.
However, there have been conflicts between findings of earlier studies. Besides the different
analytical methods used, data (i.e., the use of cross-sectional or very aggregated data) are
likely a major source contributing to the different findings. To analyse consumer behaviours,
cross-section and time-series data at the household level are most ideal. Such micro-level
panel data allow us to construct and test more complicated behavioural models than purely
cross-section data (Baltagi 1995, p. 5). Many variables can be more accurately measured at
the micro level and biases resulting from aggregation over individuals are eliminated
(Blundell 1988; Klevmarken 1989). Further, the time span of the panels used by Guo et al.
(2000) and Gould (2002) seems to be short. When panels involve annual data covering only a
short span of time, this means that asymptotic arguments rely crucially on the number of
individuals tending to infinity (Baltagi 1995, p. 7).
It is also noted that data used in the existing studies are somewhat “outdated”. Consumption
behaviours have experienced rapid changes in the past decade in China, driven chiefly by
increased consumer income and external cultural influences. Related to income growth are
the likely changes in income elasticities. For some food items such as animal products
income elasticities may increase when consumers’ incomes increase from a very low level.
However, after income has reached a certain high level, income elasticities may decline with
further increase in consumers’ income. For example, Shono et al. (2000) note that income
elasticities decreased as income and consumption levels of some meats increased over time.
Zhou (2001) reveals that the income elasticity of demand for milk tends to decline when
income rises further from a very high level. Recent empirical evidence by Chu (2003), where
he modelled urban meat consumption patterns, shows all animal products tend to exhibit a
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 5 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
trend of declining income elasticities. As such, researchers have argued that some parameters
derived based on data of a decade ago are less adequate for policy purposes in China and new
estimates based on recent data are called for (He and Tian 2000, Zhou et al. 2003).
This current study makes an additional contribution to the literature concerning China’s rural
food consumption in several ways. First, it uses the most up-to-date household-level survey
data with a longer span of time (1995-2002). Second, for better representation, it selects three
provinces of different levels of economic development (Guangdong represents an
economically developed region and Hubei a medium developed region while Yunnan an
economically less developed region). Third, while the SSB household survey data have been
used fairly extensively for study on China’s food consumption, the household survey data
collected by the Research Centre for Rural Economy of the Ministry of Agriculture remains
little exploited. This study makes use of this data source. Finally, in addition to examining
those common determinants of food expenditure, this study will also explore the likely
impacts of some other factors on food consumption such as family type, family major
business operations, tax and fee burden, and influences of family members not working on
the land; these factors have been so far largely left untouched in the literature.
3. Data
Household-level survey data are regularly collected by the Research Centre for Rural
Economy (RCRE) of the Ministry of Agriculture in all regions in China. The survey first
began in 1986 and was carried out annually except in 1992 and 1994. In each village, some
100 households were surveyed. The survey instruments have evolved over the years. Those
used for 1986-91 were the same (with 312 variables), but they were expanded for the 1993
survey (with 394 variables) and further expanded for the surveys since 1995 (with 439
variables). Data between 1995 and 2002 are used in this study to ensure consistency of
variables over years.
The three provinces, Guangdong, Hubei and Yunnan, are selected for this study. They
represent different levels of economic development; namely, Guangdong representing the
most developed, Hubei the medium developed and Yunnan the least developed. Three Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 6 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
villages were then selected from each province according to the level of economic
development as measured by per capita net income. Brief information about the region where
the chosen villages are located is given in Table 1, together with per capita income in each
village.
[Table 1 here]
In the surveys, there are nine categories of major family business activities: 1) cropping, 2)
forestry, 3) animal husbandry, 4) fishery, 5) industry, 6) construction, 7) transportation, 8)
tertiary services, and 9) others. In this study, activities belonging to categories 1-4 are
considered as farming and the rest as non-farming (i.e., categories 5-9).3 To minimise errors
in the data, we applied various criteria to a number of variables to cross check the data.
Whenever doubt arose or when an observation has an un-legitimate entry (e.g., the number of
family members is zero), the relevant observations are eliminated.
4. Preliminary Analysis
Results of preliminary analyses of the survey data are reported below.
(1) Food expenditure still accounts for a large portion of total living expenditure
Table 2 shows that over 55% of total living expenditure is spent on food. This proportion is
higher for the poorer province, Yunnan. In Table 2, the proportion of Guangdong, more
economically developed province, is not significantly lower than that of Yunnan due to the
following reasons. (1) The income level of Yunnan’s Village 1 is very high, thus pulling
down the provincial average (see Table A1). (2) Although the income level of Guangdong’s
Village 1 is very high, that of the other two villages is low, pushing up the provincial average.
At the village level, about 66% of total living expenditure were spent on food in these two
villages of Guangdong in 2002 (see Table A1). Table A1 also shows that in the poorest
3 In 1996, one further category was added: no family business operations. Currently, the number of families without any business operations is small. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 7 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
village, Village 2 of Yunnan, by 2002, there is still some 75% of total living cost spent on
food.
[Table 2 here]
While the proportion of expenditure on food is slowly declining, the proportion of
expenditure on other items is increasing, chiefly, houses, tertiary services, and culture.
However, there are distinct regional differences. In the poorer province, Yunnan, the
proportion of expenditure on culture is small and also increases at a very slow pace. This
same proportion in other two provinces is almost three times that in Yunnan (Table 2).
(2) Proportion of food expenditure on staple food is declining but that on away from home
consumption is increasing
At the all-three province level, over the past decade, expenditure on staple food (chiefly
foodgrains in China) among total food expenditure is declining (from 39% in 1995 to 35.3%
in 2002) while expenditure on away from home consumption has steadily increased (from 7%
in 1995 to 11.7% in 2002) (Table 3). Expenditure on non-staple food declined slightly from
54% in 1995 to 53% in 2002.
[Table 3 here]
(3) Consumption of foodgrains is declining and that of food of animal origin is slowly
increasing
Table 4 indicates that, as rural income increases over the past decade, there is a clear
declining trend in direct consumption of foodgrains. However, at the all-three-province level,
the increase in the consumption of food of animal origin is not very notable except in the case
of poultry meat where there is a 28% increase in 2002 compared with 1995. At the more
disaggregated levels, a slow increase in the consumption of most animal products can be
established (see, Table 4 at the provincial level and Table A2 at the village level).
[Table 4 here]
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 8 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
However, while there is a general trend in reduced consumption of foodgrains and increased
consumption of animal products, there are clear regional differences both in the speed of
changes in consumption composition and the level of consumption of various animal
products. For example, Table A2 shows that in Village 2 of Yunnan province, the poorest
village among the chosen nine villages, consumption of animal products is very low and in
some cases declining. Consumption of aquatic products and poultry eggs is almost nil. The
consumption of animal products in the two villages in Guangdong province, Villages 2 and 3,
also experienced stagnation or even reduction.
On the other hand, the increase in the consumption of animal products in the two richer
villages, Village 1 of Guangdong and Village 1 in Yunnan, is most notable. The level of
consumption of various animal products in these two villages is also much higher than that in
other villages (Table A2) (Higher level consumption of aquatic products in the villages of
Guangdong is also related to local dietary habits). The above tends to confirm that, in
addition to some regional influences on dietary habits, consumer income is a most import
determinant that affects the composition and the level of food consumption. Analysis
between the income level and food consumption that follows provides further confirmation.
(4) Income level is the major determinant on the composition and the level of food
consumption
Table 5 clearly shows that as income increases, the proportion of living expenditure spent on
food declines. For those living under poverty, a very high portion of the living expenditure,
being almost 80%, is spent on food.4 This same proportion is only a little over 30% for those
very wealthy residents with a per capita income of more than 20000 yuan. On the other hand,
as income increases, the Chinese rural residents spend more on improving their dwelling
conditions and obtaining more tertiary services. Proportionally, the expenditure on culture
tends to increase first and then start to decline (Table 5).
4 In 1995, the poverty line for rural residents in China was 530 yuan (1US$=¥8.351 in 1995). In 1999, this was raised to be 625 yuan (1US$=¥8.278 in 1999). The poverty line set by the United Nations for developing countries is US $31.67 per capita per month, or roughly 1US$ per day. Village-level per capita income data show that in Village 3 of Yunnan province many households live near or under the poverty line as set by the Chinese government. Most worrisome is that the per capita income in this village sometimes declines excessively. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 9 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
[Table 5 here]
Table 5 further shows that, as income increases, the proportion of food expenditure on staple
food, chiefly foodgrains in China, declines rapidly while that on non-staple food and on
away-from-home consumption increases, suggesting that the composition of their food
consumption changes and diversifies. This is clearly reflected in Table 6. An increase in
income from very low level initially leads to increased direct consumption of foodgrains.
This is not surprising as the poor have difficulty in getting enough to eat and they will
consume more foodgrains before they commit their limited resources to consume other food
of more a luxury nature. However, as the income further increases, the consumption of
foodgrains starts to decline while that of other food items continue to increase (Table 6).
[Table 6 here]
While most of other food items, chiefly, animal products, further increases as income goes
up, some other food items do not follow the same pattern. Among the latter, the consumption
of animal oil increases and then declines – most likely due to health concerns. The
consumption of vegetable exhibits a similar patter to animal oil – perhaps due to increased
consumption of fruits. Sugar consumption tends to stabilise as income reaches a certain level
– again likely due to health concerns. On the other hand, the consumption level of other food
items by higher income groups of rural residents (namely, pork, beef and mutton, milk,
poultry meat and eggs, and aquatic products) is significantly higher than that of those lower
income groups of rural people.
(5) Other factors that affect rural consumption
Some other factors may affect food consumption, though indirectly, through their influence
on the level of income. In Table 7, family heads of those with lower per capita income tend to
have lower education level. Table 7 also indicates that a family’s ability to earn income off
farm has a very strong impact on their income level and hence their consumption patterns.
Those families with very high per capita income derive a very small portion of their income
from agriculture. Their living expenditure is over 35 times that of the poorest group. It is also
interesting to note that those very poor families proportionally pay much higher taxes and
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 10 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
charges. These further eat into their very bare means of surviving. Cross tabulation was
carried out to examine whether family type would have any impact on the patterns of food
consumption in rural China. No clear relationships between the two could be established
although those extended families do tend to have slightly higher milk consumption. This is
likely due to the fact that such larger families tend to have more children and elderly and thus
higher milk consumption. Family size and the age of family head are also found to have little
impact on the patterns of food consumption.
[Table 7 here]
The preliminary analyses of the data revealed some useful trends in relation to food
consumption in rural China. These trends confirm that important changes are taking place in
the front of rural food consumption. The preliminary analyses also pinpointed some factors
that may have contributed to the changes in food consumption patterns in rural China. An
understanding of such factors is of great relevance to government food policy formation and
food marketing strategies.
Major factors that may affect the level and composition of food consumption in rural China
may be placed into the following groups:
(1) Prices of food
(2) Per capita net income
(3) Tax and fee burdens 5
(4) Regional differences
(5) Other non-price and non-income factors, chiefly, family characteristics, including:
1) family size
2) family type 6
3) age of household head
4) education level of household head 5 Tax and fee burden affects net income. We examine this factor separately because we are interested in finding out whether the higher proportion of tax and fees paid by the lower income group of people negatively affect their food consumption. 6 1) and 2) are related. Family type will affect the size of the family. They may affect food consumption patterns, e.g., a larger family is more likely to have children and elderly and hence has to cater for the needs of the children and elderly. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 11 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
5) proportion of non-rural labour out of total family labour
6) proportion of income from non-farming sources 7
The RCRE household survey data only collect the quantity of various food items consumed
by households without the corresponding consumption expenditure. This makes it impossible
to infer any price information. Various other alternatives have been attempted but they can
help little to derive any meaningful price information. The absence of price data is rather
unfortunate and it limits our ability to analyse various effects related to price changes such as
income effect and substitution effect. Nonetheless, our database contains much other useful
household information that will still entail us to discover the effects associated with many
other factors as enumerated in the above. Our econometric modelling will focus on such other
factors and will be carried out in our next stage’s work.
5. Some Concluding Comments
In spite of the absence of empirical results based on econometric modelling, some important
observations can still be derived based on some preliminary analyses.
While food expenditure still accounts for a large proportion of total living expenditure, this
proportion is declining. The proportion of expenditure on housing, tertiary services and
education is on the increase. This trend will continue into the near future for China’s rural
areas. As such, although the proportion of income spent on food will decline, total
expenditure spent on food will continue to rise due to increased consumer income. On the
other hand, the market potential for non-food consumer goods will be enormous.
Direct consumption of foodgrains has started to decline in rural China. At the all-three
province level, the proportion of food expenditure on staple food is declining while that on
away from home consumption has steadily increased. Expenditure on non-staple food
7 5) and 6) are also related and both are also related to income. Generally if they are higher, we can expect the family has higher per capita income. However, they can be used as proxies to capture the influence of other two factors on consumption, i.e., urbanisation and influence of outside culture. With more labour engaged in non-farming/non rural work, they get more exposed to influences from elsewhere which in turn will affect their family consumption patterns. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 12 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
declined slightly. This suggests that there is much room for food catering industry
development.
While direct consumption of foodgrains is declining, there is an increase in the indirect
consumption of grains; that is, through increased consumption of animal products whose
production consumes grains. However, according to the survey data, at the all-three province
level, the increase in animal product consumption by the Chinese rural residents is rather
slow over the past decade. It implies that unless there are drastic changes (e.g., rapid increase
in consumer income), the increase in the consumption of animal products in China’s rural
areas is likely to be small. 8
However, there are significant regional differences in the composition of food consumption.
Per capita consumption of aquatic products in Guangdong is much higher than that in
Yunnan. Apart from income differences, availability of some foods is a key determinant that
leads to different dietary habits in different regions. Unlike the markets in developed
economies, many agricultural markets in China are not well integrated and some food items
are simply not available in the vast rural areas in China. It may be anticipated that, as the
Chinese agricultural markets get further integrated, the total demand for some food items will
increase.
Income plays a major role in determining the composition and the level of food consumption.
As income increases, the proportion of food expenditure on staple food, chiefly foodgrains,
declines rapidly while that on non-staple food and on away-from-home consumption
increases. This suggests that the composition of their food consumption changes and
diversifies. The consumption level of pork, beef and mutton, milk, poultry meat and eggs,
and aquatic products by higher income groups of rural residents is significantly higher than
that of those with lower income. Future increase in rural income will have a great impact on
food consumption in China.
8 It is noted that faster increase in the consumption of some animal products took place in the early 1990s, largely attributable to a faster increase in income. However, there has been a slowing down in consumer income increase in rural areas in the past several years. During 1997-2001, per capita income growth in rural areas was 3.2%, down from 25.2% during the previous five-year period (1992-96). Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 13 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
A family’s ability to earn income off farm has a very strong impact on their income level and
hence their consumption patterns. Those families with very high per capita income derive a
very small portion of their income from agriculture. Apart from the fact that more family
labour working off farm earns the family higher income, it is also likely that those working
off farm have great exposure to external influences and subsequently influence home food
consumption. As such, increased rural-urban exchanges and urbanisation will impact on
China’s rural food consumption.
Very poor families proportionally pay much higher taxes and charges. Government’s efforts
in reducing the poor’s tax burden will help them to improve their food intake. In addition,
heads of those poor families tend to have lower education level. This is another area where
government action is needed.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 14 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
References
Baltagi, B.H. (1995), Econometric Analysis of Panel Data, Wiley, Chichester.
Blundell, R. (1988), ‘Consumer behaviour: Theory and empirical evidence – A survey’, The
Economic Journal, Vol. 98, pp. 16-65.
Chu, Y.T. (2003), ‘An analysis on China’s feed market, Ph.D. Dissertation, China
Agricultural University, Beijing.
Coyle, W. Gehlhar, M., Hertel, T.W., Wang, Z. and Yu, W.S. (1998), ‘Understand the
determinants of structural changes in world food market’, Staff Paper 98-05, GTAP Centre,
Purdue University.
Cranfield, J.A.L., Hertel, T.W., Eales, J.S. and Preckel, P.V. (1998), ‘Changes in the structure
of global food demand’, Staff Paper 98-05, GTAP Centre, Purdue University.
Fan, S.G., Wailes, E.J. and Cramer, G.L. (1995), ‘Household demand in rural China: a two-
stage LES-AIDS model’, American Journal of Agricultural Economics, Vol. 77, pp. 54-62.
Gould (2002), ‘Household composition and food expenditure in China’, Agribusiness, Vol.
18, pp. 387-402.
Guo, X.G., Mroz, T. A. and Popkin, B.M. (2000), ‘Structural change in the impact of income
on food consumption in China, 1989-1993’, Economic Development and Cultural Change,
Vol. 48, pp. 737-60.
Haines, P.S., Guilkey, D.K. and Popkin, B.M. (1988), ‘ Modelling food consumption
decisions as a two-step process’, American Journal of Agricultural Economics, Vol. 70, pp.
543-52.
Halbrendt, C. and Tuan, F. (1994), ‘Rural Chinese food consumption: The case of
Guangdong’, American Journal of Agricultural Economics, Vol. 76, pp. 794-99. Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 15 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
He, X.R. and Tian, W.M. (2000), ‘Livestock consumption: diverse and changing
preferences’, in Yang, Y.Z. and Tian, W.M. (eds) China’s Agriculture at the Crossroads,
Macmillan Press, London, pp. 78-97.
Huang, J.K. and Rozelle, S. (1998), ‘Market development and food demand in rural China’,
China Economic Review, Vol. 9, pp. 25-45.
Ishida, A., Law, S.H. and Aita, Y. 2003, ‘Changes in food consumption expenditure in
Malaysia’, Agribusiness, Vol. 19, pp. 61-76.
Jones, E., Akbay, C., Roe, B. and Chern, W.S. (2003), ‘Analyses of consumers’ dietary
behaviour: An application of the AIDS model to supermarket scanner data’, Agribusiness,
Vol. 19, pp. 203-221.
Klevmarken, N.A. (1989), ‘Panel studies: What can we learn from them?” Introduction,
European Economic Review, Vol. 33, pp. 523-29.
Regmi, A., Deepak, M.S., Seale, J.L. and Bernstein, J 2001, ‘Cross-country analysis of food
consumption patterns’, in Regmi, A. (ed.), Changing Structure of Global Food Consumption
and Trade, ERS WRS No. 01-1, USDA, Washington, D.C.
Regmi, A. (ed.), Changing Structure of Global Food Consumption and Trade, ERS WRS No.
01-1, USDA, Washington, D.C.
Sakong, Y. and Hayes, D.J. (1993), ‘Testing the stability of ?references: a nonparametric
approach’, American Journal of Agricultural Economics, Vol. 75, pp. 269-77.
Shono, C., Suzuki, N. and Kaiser, H.M. 2000, “Will China’s diet follow western diets?’
Agribusiness, Vol. 16, pp. 271-79.
Wan, G.H. (1998), ‘Nonparametric measurement of preference changes: The case of food
demand in rural China’, Applied Economics Letters, Vol. 5, pp. 433-36.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 16 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Wu, Y.R. and Li, E. (1995), ‘Food consumption in urban China: An empirical analysis’,
Applied Economics, Vol. 27, pp. 509-15.
Wu, Y.R. (1999), China’s Consumer Revolution, Edward Elgar, Cheltenham.
Yuan, X.G. (2001), ‘A study on the consumption of animal products in China’, Ph.D.
Dissertation, Chinese Academy of Agricultural Sciences, Beijing.
Zhou, J.L. 2001, ‘A study on the dairy market in China’, Ph.D. Dissertation, China
Agricultural University, Beijing.
Zhou, Z.Y., Tian, W.M., Liu, X.A. and Wan, G.H. (2003), ‘Studying China’s feedgrain
demand and supply: Research methodological issues’, in Zhou, Z.Y. and Tian, W.M. (eds),
China’s Regional Feedgrain Markets: Developments and Prospects, Grains Research and
Development Corporation, Canberra.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 17 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Table 1: Brief Description of Sample Regions
Province and
Rural Per
Capita Income
(¥)
City from
which a Sample
Village is
Drawn
Village-
level Per
Capita
Income (¥)
Brief Description of the Region
Hanyang
(Village 1)
3253 A relatively developed region within the
province with good transportation
Hubei
(2352)
Hanchuan
(Village 2)
3049 Similar to Hanyang
Changyang
(Village 3)
1838 A hilly area with a less developed economy
and market
Dongguan
(Village 1)
11699 Highly industrialised area close to
Guangzhou and Hong Kong
Guangdong
(3770)
Dianbai
(Village 2)
2651 Relatively less developed area within
Guangdong province
Wuchuan
(Village 3)
2333 Similar to Dianbai but in a coastal area
Yuxi
(Village 1)
6638 A wealthier area with much injection from
a highly developed tobacco industry
Yunnan
(1534)
Lanchang
(Village 2)
509 Very remote and mountainous area, one of
the poorest regions in the province and in
China
Dali
(Village 3)
2070 Very remote and mountainous area, one of
the poorer regions but with tourist
resources Note: Per capita net income at the village level for 2001 is reported here to be comparable with the
provincial average in 2001, the latest available.
Sources: SSB (2002); RCRE survey data.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 18 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Table 2: Changes in the Composition of Living Expenditure in Rural China (%)
Year
Per Capita
Income (¥)
Food Cloth House Fuel Daily
Consumables
Services Culture Other
All Three Provinces
1995 3121 62.6 7.3 6.2 3.7 6.4 4.9 7.2 1.7
1996 3596 63.3 6.4 6.9 3.7 5.7 4.7 8.2 1.1
1997 3692 60.8 7.2 6.6 3.5 6.0 5.8 8.4 1.8
1998 3575 62.3 6.8 5.1 3.8 5.4 5.8 8.8 1.9
1999 3634 61.8 6.3 5.7 4.1 5.3 6.3 8.8 1.7
2000 4106 57.2 6.7 7.9 4.3 5.7 6.9 9.7 1.6
2001 3905 58.1 6.3 7.1 4.2 5.3 7.8 9.5 1.6
2002 5940 55.5 5.7 8.7 4.1 6.9 8.6 8.9 1.5
Hubei
1995 2556 57.9 7.9 5.9 4.8 7.1 5.3 8.9 2.3
1996 2238 59.2 6.6 5.5 5.2 5.1 6.8 11.4 0.1
1997 2630 58.5 7.6 5.0 4.4 5.5 6.8 10.7 1.7
1998 2408 59.9 7.6 3.0 5.5 4.5 7.5 9.9 2.1
1999 2489 55.3 7.1 5.4 5.8 6.3 6.9 10.9 2.3
2000 2685 49.6 8.2 8.3 6.6 5.6 8.7 12.4 0.6
2001 2707 50.5 7.3 5.7 6.0 5.7 12.1 11.2 1.5
2002 2911 49.1 7.3 4.1 5.5 7.6 11.6 12.7 2.0
Guangdong
1995 4546 61.0 5.7 8.2 2.9 6.4 4.9 9.6 1.3
1996 5019 60.9 5.4 7.4 2.9 7.6 3.8 10.3 1.6
1997 5262 58.4 5.3 7.9 3.0 7.4 4.8 11.0 2.2
1998 4649 63.0 4.9 5.8 3.1 4.4 4.6 12.4 1.9
1999 4881 63.5 4.8 5.9 3.3 4.2 4.8 11.7 1.8
2000 5533 58.2 5.0 9.6 3.4 5.1 4.7 12.7 1.3
2001 5514 60.5 4.9 6.5 3.5 4.2 5.8 13.2 1.4
2002 10552 56.7 4.4 6.5 3.5 7.3 9.1 11.3 1.2
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 19 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Yunnan
1995 2014 67.2 8.7 4.3 3.8 6.0 4.7 3.6 1.8
1996 2934 68.2 7.2 7.3 3.6 4.0 4.2 4.3 1.2
1997 2825 64.2 8.7 6.2 3.4 5.1 6.2 4.6 1.6
1998 3189 63.1 8.3 5.8 3.5 6.8 6.1 4.6 1.8
1999 3046 63.9 7.4 5.6 3.9 5.9 7.5 4.7 1.1
2000 3515 60.6 7.6 5.9 3.9 6.3 7.9 5.1 2.5
2001 3018 60.1 7.0 8.5 3.9 6.3 7.4 4.8 2.0
2002 3199 58.0 6.0 13.3 4.0 6.2 6.5 4.4 1.6
Note: The per capita income of Guangdong suddenly almost doubled in 2002. This is caused by an abrupt
increase in per capita income (more than doubled) in Village 1 of Guangdong in that year.
Source: calculated from RCRE survey data.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 20 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Table 3. Composition of Food Expenditure
Year Staple Food Non-Staple Food Away from Home
Consumption
1995 39.0 54.0 7.0
1996 39.0 52.7 8.1
1997 36.5 55.0 8.5
1998 36.4 54.2 9.0
1999 37.2 52.7 10.1
2000 35.4 53.3 11.3
2001 36.8 52.0 11.2
2002 35.3 53.0 11.7
Source: calculated from RCRE survey data.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 21 -
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Tab
le 4
: Tre
nds i
n Pe
r C
apita
Con
sum
ptio
n of
Maj
or F
ood
Item
s in
Rur
al C
hina
(kg)
Yea
r
Per C
apita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les V
eget
able
Oil
Ani
mal
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eggs
Aqu
atic
Prod
ucts
Frui
tsSu
gar
All
Thre
e Pr
ovin
ces
1995
ubei
3121
201.
312
0.8
5.7
2.3
20.1
1.0
0.09
4.0
2.8
12.4
13.4
2.5
1996
3596
201.
312
1.8
5.8
2.3
20.4
1.1
0.09
4.0
2.9
12.0
11.8
2.4
1997
3692
194.
411
6.5
6.1
2.3
20.0
1.0
0.13
4.0
2.8
12.9
13.4
2.4
1998
3575
193.
111
7.8
6.3
2.8
20.3
1.3
0.09
4.5
2.9
12.4
13.1
2.6
1999
3634
189.
810
6.8
6.0
2.5
19.5
1.1
0.07
4.6
2.8
11.9
13.8
2.5
2000
4106
188.
811
2.3
6.8
2.5
21.2
1.3
0.14
5.1
3.1
12.4
15.6
2.4
2001
3905
184.
811
3.0
6.6
2.6
20.7
1.1
0.15
5.0
3.1
12.4
13.5
2.1
2002
5940
180.
111
7.3
7.5
2.6
20.6
1.1
0.43
5.1
3.0
12.3
13.2
2.5
H
1995
2556
210.
215
8.1
11.9
2.3
23.9
0.8
0.02
1.5
4.2
11.3
14.1
1.8
1996
2238
210.
516
8.5
11.5
2.3
25.1
0.7
0.02
1.5
3.9
10.6
8.1
1.7
1997
2630
208.
616
9.2
12.6
2.4
24.6
1.0
0.08
2.0
3.6
11.4
18.1
1.9
1998
2408
207.
415
4.8
12.4
2.8
24.6
0.7
0.07
1.8
3.4
10.8
13.6
1.9
1999
2489
210.
314
9.8
11.9
2.5
22.1
0.9
0.07
1.7
3.4
9.0
14.7
1.8
2000
2685
200.
313
9.4
13.8
3.0
24.4
1.1
0.05
1.9
4.1
9.3
21.7
2.0
2001
2707
188.
112
8.0
13.0
3.1
24.0
1.1
0.09
2.1
3.8
8.7
12.0
1.9
Zhou
, Z-Y
., W
u, Y
-R.,
& T
ian,
W-M
., ‘F
ood
Con
sum
ptio
n in
Rur
al C
hina
: Pre
limin
ary
Res
ults
from
H
ouse
hold
Sur
vey
Dat
a’.
- 2
2 -
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Yea
r
Per C
apita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les V
eget
able
Oil
Ani
mal
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eggs
Aqu
atic
Prod
ucts
Frui
tsSu
gar
2002
2911
176.
012
5.4
15.5
2.4
22.2
1.1
0.07
2.3
4.0
8.4
9.3
1.6
Gua
ngdo
ng
1995
4546
177.
169
.45.
31.
426
.61.
40.
157.
13.
124
.015
.23.
2
1996
5019
188.
870
.76.
01.
325
.81.
50.
147.
03.
523
.712
.73.
1
1997
5262
181.
771
.06.
11.
426
.31.
20.
187.
13.
726
.513
.23.
2
1998
4649
188.
873
.56.
01.
425
.11.
20.
097.
63.
724
.513
.13.
0
1999
4881
192.
274
.35.
91.
324
.31.
20.
078.
03.
924
.213
.72.
7
2000
5533
196.
075
.66.
11.
425
.40.
90.
188.
73.
925
.014
.62.
6
2001
5514
197.
279
.76.
41.
725
.81.
00.
159.
14.
325
.915
.12.
2
2002
1055
220
0.2
87.8
6.9
2.0
26.2
0.9
0.35
8.8
4.0
25.6
15.6
2.4
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le
Oil
Ani
mal
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eg
gsA
quat
ic
Prod
ucts
Fr
uits
Suga
r
Yun
nan
1995
2014
220.
614
9.8
2.2
3.3
10.9
0.7
0.08
2.5
1.6
1.0
11.2
2.1
1996
2934
208.
714
6.8
2.4
3.3
12.2
0.8
0.09
2.4
1.6
1.0
13.1
2.1
1997
2825
198.
112
9.2
2.5
3.1
11.4
0.9
0.12
2.3
1.4
1.0
11.0
1.8
1998
3189
189.
014
0.1
3.2
4.3
13.1
1.7
0.10
3.0
1.7
1.3
12.8
2.5
1999
3046
175.
711
4.8
2.8
3.8
13.4
1.2
0.07
2.9
1.4
1.2
13.4
2.7
Zhou
, Z-Y
., W
u, Y
-R.,
& T
ian,
W-M
., ‘F
ood
Con
sum
ptio
n in
Rur
al C
hina
: Pre
limin
ary
Res
ults
from
H
ouse
hold
Sur
vey
Dat
a’.
- 2
3 -
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le
Oil
Ani
mal
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eg
gsA
quat
ic
Prod
ucts
Fr
uits
Suga
r
2000
3515
174.
813
3.0
3.3
3.3
15.1
1.8
0.16
3.3
1.7
1.6
13.0
2.5
2001
3018
170.
713
6.9
3.2
3.2
13.9
1.2
0.20
2.6
1.5
1.3
12.8
2.1
2002
3199
163.
014
1.1
3.6
3.2
14.4
1.4
0.70
3.1
1.6
1.7
13.2
3.1
Sour
ce: c
alcu
late
d fr
om R
CR
E su
rvey
dat
a.
Zhou
, Z-Y
., W
u, Y
-R.,
& T
ian,
W-M
., ‘F
ood
Con
sum
ptio
n in
Rur
al C
hina
: Pre
limin
ary
Res
ults
from
H
ouse
hold
Sur
vey
Dat
a’.
- 2
4 -
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Tab
le 5
: Con
sum
er In
com
e an
d Pr
opor
tion
of L
ivin
g E
xpen
ditu
re o
n Fo
od a
nd O
ther
Item
s in
Rur
al C
hina
Expe
nditu
re o
n Fo
od C
onsu
mpt
ion
(%)
Ex
pend
iture
on
Oth
er It
ems (
%)
Am
ong
whi
ch (%
)
Inco
me
Gro
up
(¥)
Tota
l Foo
d
Expe
nditu
re
Stap
le
Food
Non
-Sta
ple
Food
Aw
ay fr
om H
ome
Con
sum
ptio
n
Clo
th
H
ouse
Fuel
Dai
ly
Con
sum
able
s
Expe
nditu
re
on T
ertia
ry
Serv
ices
Cul
ture
Oth
er
≤500
79
.1
69.4
29.0
1.6
6.
54.
33.
92.
52.
01.
60.
1
501-
1000
71.4
52.5
43.6
3.1
7.
04.
74.
63.
74.
14.
40.
2
1001
-200
065
.038
.553
.37.
5
6.0
4.7
4.1
4.4
5.1
9.8
0.9
2001
-300
059
.133
.854
.411
.4
6.7
5.5
4.2
5.3
6.3
11.3
1.5
3001
-400
055
.729
.756
.713
.1
7.0
6.2
3.8
6.0
7.8
11.0
2.5
4001
-600
051
.027
.459
.113
.4
7.3
9.1
3.6
7.7
9.0
9.4
2.9
6001
-100
0050
.023
.062
.514
.5
6.7
9.7
3.4
9.1
9.2
8.3
3.6
1000
1-20
000
44.5
22.1
64.8
13.1
5.
915
.72.
812
.48.
96.
73.
2
>200
0033
.419
.364
.316
.5
5.3
23.9
2.4
13.3
13.7
6.8
1.4
Sour
ce: c
alcu
late
d fr
om R
CR
E su
rvey
dat
a.
Zhou
, Z-Y
., W
u, Y
-R.,
& T
ian,
W-M
., ‘F
ood
Con
sum
ptio
n in
Rur
al C
hina
: Pre
limin
ary
Res
ults
from
H
ouse
hold
Sur
vey
Dat
a’.
- 2
5 -
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Tab
le 6
: Con
sum
er In
com
e an
d th
e L
evel
of C
onsu
mpt
ion
of D
iffer
ent F
ood
Item
s in
Rur
al C
hina
Inco
me
Gro
up
(¥)
Food
grai
ns
(unm
illed
)
(kg)
Food
grai
ns
(bou
ght)
(kg)
Veg
etab
les
(kg)
Veg
etab
le
Oil
(kg)
Ani
mal
Oil
(kg)
Pork
(kg)
Bee
f and
Mut
ton
(kg)
Milk
(kg)
Poul
try
Mea
t
(kg)
Eggs
(kg)
Aqu
atic
Prod
ucts
(kg)
Frui
ts
(kg)
Suga
r
(kg)
≤500
19
9.4
29.3
107.
60.
40.
43.
40.
40.
011.
40.
20.
22.
90.
7
501-
1000
195.
838
.610
8.8
3.0
1.9
13.5
0.6
0.00
2.0
0.9
2.6
7.0
1.3
1001
-200
020
6.4
62.6
106.
85.
72.
620
.30.
80.
043.
42.
49.
79.
12.
3
2001
-300
020
3.3
78.3
108.
97.
72.
619
.81.
10.
054.
43.
113
.99.
92.
6
3001
-400
019
1.3
82.5
127.
88.
23.
422
.71.
30.
104.
63.
715
.415
.22.
7
4001
-600
017
9.0
81.4
136.
28.
33.
326
.71.
80.
146.
44.
416
.820
.83.
2
6001
-100
0016
1.5
97.4
129.
88.
02.
827
.71.
80.
427.
85.
018
.325
.63.
3
1000
1-20
000
143.
711
7.2
122.
38.
51.
927
.42.
00.
529.
14.
524
.830
.73.
1
>200
0014
0.8
127.
711
5.7
9.4
1.4
31.2
3.0
2.31
12.5
5.4
30.7
40.5
3.3
Sour
ce: c
alcu
late
d fr
om R
CR
E su
rvey
dat
a.
Zhou
, Z-Y
., W
u, Y
-R.,
& T
ian,
W-M
., ‘F
ood
Con
sum
ptio
n in
Rur
al C
hina
: Pre
limin
ary
Res
ults
from
H
ouse
hold
Sur
vey
Dat
a’.
- 2
6 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Table 7: Relationships between Income and Other Family Attriutees
Income
Group
(¥)
No. of
Obs
% of
total
Per Capita
Income
(¥)
Education
Level of
Family
Head
Non-Agric.
Income out
of total
Income
(%)
Per Capita
Living
Expenditure
(¥)
Tax/Fee
Payments
Per Capita
(¥)
Tax/Fee
Payments out
of Income Per
Capita
(%)
≤500 432 7 354 1.3 24.1 481 28 8.5
501-1000 606 10 747 1.7 32.3 855 43 5.8
1001-2000 1532 26 1513 2.3 56.0 1412 65 4.4
2001-3000 1134 19 2448 2.5 70.4 1889 108 4.3
3001-4000 658 11 3462 2.5 80.3 2510 145 4.3
4001-6000 624 11 4898 2.5 87.7 4121 171 3.5
6001-10000 457 8 7681 2.6 91.1 4603 202 2.6
10001-20000 298 5 13412 2.7 94.6 7647 288 2.1
>20000 110 2 41532 2.6 97.3 17295 2584 4.8
Source: calculated from RCRE survey data.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 27 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Appendix
Table A1: Changes in the Composition of Living Expenditure at the Village Level
in Rural China (%)
Year
Per Capita
Income
Food Cloth House Fuel Daily
Consumables
Services Culture Other
Hubei, Village 1
1995 3111 54.6 8.6 5.0 4.2 6.2 5.6 10.3 5.5
1996 2896 56.0 6.6 3.4 5.8 6.1 7.7 14.0 0.4
1997 3531 59.4 6.7 3.3 6.0 2.5 7.8 12.4 1.8
1998 3154 58.1 9.1 1.6 6.3 5.0 9.4 9.0 1.6
1999 3552 50.0 8.5 4.3 5.5 5.1 8.9 13.9 3.9
2000 3509 48.4 8.2 1.8 6.1 3.2 13.5 17.8 0.8
2001 3253 51.2 8.9 1.0 6.9 3.1 15.6 10.7 2.8
2002 4089 47.6 9.5 0.9 6.6 5.5 13.7 11.1 5.1
Hubei, Village 2
1995 3081 60.0 6.8 6.9 4.4 9.2 4.0 8.7 0.1
1996 2425 58.3 5.3 4.9 5.5 5.6 6.8 13.7 0.1
1997 2685 56.5 8.5 3.4 2.4 8.1 6.9 12.2 2.0
1998 2581 57.2 7.9 3.9 4.1 5.6 6.3 12.9 2.1
1999 2355 55.3 7.2 7.1 4.7 8.0 5.0 10.7 2.0
2000 2804 45.0 10.5 8.4 6.1 10.5 7.2 12.1 0.3
2001 3049 45.6 7.2 8.4 4.5 7.9 10.6 14.1 1.7
2002 2890 45.6 7.2 6.3 4.8 9.6 9.2 16.2 1.0
Hubei, Village 3
1995 1532 58.7 8.4 5.8 5.6 5.7 6.3 8.0 1.6
1996 1508 62.8 7.8 8.0 4.4 3.8 6.2 7.0 0.0
1997 1723 59.5 7.4 8.2 4.8 5.7 5.6 7.6 1.1
1998 1567 64.2 5.9 3.2 6.3 3.0 7.1 7.7 2.7
1999 1570 60.4 5.5 5.0 7.1 6.0 6.6 8.2 1.2
2000 1733 55.6 5.6 14.8 7.5 2.7 5.5 7.4 0.8
2001 1838 55.0 5.9 7.5 6.8 5.8 10.3 8.7 0.0
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 28 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Year
Per Capita
Income
Food Cloth House Fuel Daily
Consumables
Services Culture Other
2002 1799 54.5 5.3 4.8 5.2 7.4 12.3 10.5 0.0
Guangdong, Village 1
1995 7535 52.7 4.7 16.4 3.0 10.8 4.7 6.0 1.7
1996 9063 51.1 4.8 12.5 2.7 16.2 4.3 6.9 1.4
1997 10052 50.2 5.2 8.3 3.0 16.2 7.4 7.8 2.0
1998 9198 55.0 4.9 12.7 2.8 8.1 6.1 8.6 1.8
1999 9503 57.4 5.5 7.2 3.5 8.9 8.2 7.7 1.8
2000 11443 50.1 5.2 12.5 3.2 11.3 7.8 8.6 1.2
2001 11699 51.4 5.6 10.0 3.3 8.5 10.5 9.4 1.3
2002 26225 38.6 3.8 12.9 2.9 14.5 19.6 6.3 1.4
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 29 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
(Table A1 continued)
Year
Per Capita
Income
Food Cloth House Fuel Daily
Consumables
Services Culture Other
Guangdong, Village 2
1995 2873 69.1 5.5 1.6 3.2 5.2 3.9 11.0 0.5
1996 3238 66.9 5.4 5.9 3.0 4.7 3.2 10.9 0.2
1997 2875 63.4 4.8 8.7 2.9 3.1 3.4 13.6 0.1
1998 2493 67.0 4.7 2.3 3.2 3.6 3.5 14.8 0.9
1999 2354 68.3 4.6 2.9 3.2 2.5 2.3 15.6 0.8
2000 2425 66.7 4.7 4.3 3.2 2.7 2.2 15.9 0.4
2001 2651 66.8 4.4 4.0 3.2 2.3 2.6 16.2 0.5
2002 2756 66.7 4.8 2.0 3.4 6.0 2.9 14.2 0.0
Guangdong, Village 3
1995 3204 61.5 6.7 6.6 2.5 3.1 6.2 11.8 1.7
1996 2963 64.1 5.9 4.1 3.2 2.5 4.0 13.1 3.2
1997 2590 62.4 5.7 6.9 3.0 2.4 3.4 12.1 4.1
1998 2425 66.6 5.0 2.6 3.3 1.6 4.3 13.7 2.9
1999 2725 65.0 4.4 7.6 3.3 1.2 3.7 11.9 2.9
2000 2694 58.0 5.1 11.7 3.9 1.3 4.1 13.6 2.4
2001 2333 63.4 4.6 5.7 3.9 1.8 4.3 14.1 2.2
2002 2253 65.4 4.7 4.5 4.1 1.3 4.4 13.5 2.2
Yunnan, Village 1
1995 3988 53.2 9.8 5.0 3.7 7.1 8.9 7.2 5.2
1996 5496 51.0 8.4 11.9 3.7 5.8 8.1 7.4 3.6
1997 5989 48.3 9.5 8.6 3.9 6.9 11.0 6.8 5.0
1998 6702 50.0 10.2 7.3 3.9 8.4 11.4 4.8 4.0
1999 6640 49.7 9.4 6.5 4.5 6.3 13.5 6.7 3.3
2000 7981 45.0 9.3 5.9 4.5 5.6 16.0 6.8 6.9
2001 6638 42.6 7.9 11.5 3.9 6.6 15.1 7.0 5.5
2002 7039 36.7 7.1 23.1 4.0 4.7 13.3 6.9 4.2
Yunnan, Village 2
1995 690 74.7 9.5 3.5 4.2 5.2 2.2 0.4 0.3
1996 577 80.4 7.1 4.4 3.9 2.3 0.9 1.1 0.0
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 30 -
Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
Year
Per Capita
Income
Food Cloth House Fuel Daily
Consumables
Services Culture Other
1997 674 77.2 9.4 3.8 3.1 3.1 2.4 1.1 0.0
1998 790 75.9 8.8 3.4 2.8 5.8 1.6 1.7 0.0
1999 510 78.6 7.1 5.0 3.1 3.3 1.5 1.4 0.0
2000 532 75.6 8.5 5.7 3.3 3.3 1.4 1.9 0.3
2001 509 73.0 7.8 9.0 3.7 2.4 2.0 2.0 0.0
2002 578 76.3 5.8 8.4 3.8 2.4 2.2 0.9 0.0
Yunnan, Village 3
1995 1483 73.0 6.7 4.4 3.3 5.7 3.3 3.4 0.1
1996 2780 72.8 6.2 5.6 3.3 3.8 3.9 4.4 0.0
1997 1985 66.2 7.2 6.4 3.3 5.5 5.5 6.0 0.0
1998 2061 63.6 5.9 6.6 3.8 6.3 5.3 7.2 1.4
1999 2142 62.7 5.8 5.4 4.0 8.1 7.7 6.3 0.0
2000 1920 61.6 5.1 6.2 4.0 10.1 6.2 6.7 0.1
2001 2070 63.8 5.4 5.1 3.9 10.0 5.6 5.6 0.6
2002 2130 59.9 5.2 8.6 4.2 11.7 4.3 5.5 0.6
Source: calculated from RCRE survey data.
Zhou, Z-Y., Wu, Y-R., & Tian, W-M., ‘Food Consumption in Rural China: Preliminary Results from Household Survey Data’. - 31 -
Tab
le A
2: T
rend
s in
Per
Cap
ita C
onsu
mpt
ion
of M
ajor
Foo
d It
ems i
n R
ural
Chi
na a
t the
Vill
age
Lev
el (k
g)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eg
gsA
quat
ic
Prod
ucts
Frui
tsSu
gar
H
ubei
, Vill
age
1
1995
31
11
273.
418
1.9
14.8
2.7
19.7
2.4
0.06
3.8
6.4
19.4
9.2
2.3
1996
28
9627
2.7
163.
712
.92.
216
.81.
60.
043.
87.
219
.19.
11.
8
1997
35
3128
3.4
179.
515
.03.
021
.42.
60.
245.
18.
119
.712
.42.
2
1998
31
5427
2.5
188.
215
.32.
318
.51.
70.
144.
37.
818
.210
.82.
6
1999
35
5227
7.1
194.
215
.92.
517
.71.
90.
123.
47.
117
.511
.02.
7
2000
35
0923
9.0
194.
516
.82.
816
.62.
10.
103.
16.
815
.412
.82.
8
2001
32
5322
4.6
215.
613
.92.
814
.42.
30.
213.
77.
118
.111
.52.
6
2002
40
8922
1.0
189.
517
.02.
816
.51.
90.
173.
96.
917
.510
.41.
8
Hub
ei, V
illag
e2
1995
30
8120
5.9
177.
212
.70.
29.
90.
00.
000.
74.
414
.74.
71.
9
1996
24
2517
7.6
224.
513
.20.
19.
20.
00.
020.
93.
413
.93.
41.
7
1997
26
8516
5.7
231.
714
.80.
411
.10.
20.
001.
12.
114
.64.
12.
4
1998
25
8118
4.4
154.
614
.00.
89.
70.
20.
041.
12.
614
.14.
62.
0
1999
23
5518
7.4
130.
513
.60.
98.
00.
70.
051.
12.
19.
06.
41.
5
2000
28
0418
4.4
95.3
14.6
1.8
12.1
0.8
0.04
2.2
3.5
10.9
7.3
1.9
2001
30
4920
1.3
91.9
16.3
2.9
11.6
0.4
0.00
2.3
3.9
8.1
6.6
2.3
2002
28
9017
3.0
91.1
19.2
2.7
11.1
0.5
0.00
2.0
3.9
7.2
5.7
2.2
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
fand
Po
ultry
Mea
t M
utto
n
Milk
Eggs
Aqu
atic
Prod
ucts
Hub
ei, V
illag
e3
1995
15
32
157.
711
7.6
8.4
3.9
41.6
0.3
0.00
0.4
2.0
0.7
27.9
1.2
1996
15
0818
8.8
120.
48.
84.
446
.90.
50.
000.
11.
70.
411
.61.
5
1997
17
2318
1.0
96.9
8.1
4.0
41.1
0.2
0.00
0.1
1.0
0.5
37.5
1.3
1998
15
6717
2.1
125.
28.
15.
145
.00.
10.
040.
10.
40.
924
.91.
3
1999
15
7016
6.0
124.
06.
24.
039
.40.
10.
040.
51.
00.
626
.11.
2
2000
17
3317
8.7
131.
610
.14.
445
.30.
60.
000.
42.
01.
646
.11.
2
2001
18
3814
0.0
82.6
8.7
3.6
46.0
0.5
0.05
0.4
0.5
0.2
17.9
0.8
2002
17
9913
6.2
101.
79.
91.
640
.01.
10.
051.
21.
30.
912
.20.
8
33
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
(Tab
le A
2 co
ntin
ued)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eg
gsA
quat
ic
Prod
ucts
Frui
tsSu
gar
Gua
ngdo
ng, V
illag
e1
1995
75
35
134.
572
.86.
00.
129
.10.
50.
208.
82.
728
.733
.53.
4
1996
90
6312
0.6
73.8
7.3
0.5
28.2
0.4
0.34
8.1
3.4
29.9
27.6
3.6
1997
10
052
123.
477
.57.
10.
331
.20.
60.
437.
83.
931
.626
.23.
8
1998
91
9813
3.9
91.2
7.0
0.5
29.7
0.8
0.28
8.7
4.7
30.7
26.8
3.6
1999
95
0313
8.4
101.
27.
30.
429
.00.
90.
179.
54.
830
.627
.73.
5
2000
11
443
140.
010
1.0
7.6
0.9
30.7
0.7
0.50
8.9
5.2
29.7
29.3
3.6
2001
11
699
140.
310
9.2
7.9
1.4
30.1
1.1
0.40
10.5
6.4
30.3
29.5
2.3
2002
26
225
139.
011
7.6
8.4
1.3
32.7
0.9
1.02
11.5
5.9
29.4
32.0
2.5
Gua
ngdo
ng, V
illag
e2
1995
28
7319
6.4
99.6
6.7
2.5
30.7
3.6
0.25
8.9
4.9
16.2
8.3
4.2
1996
32
3823
8.7
101.
27.
61.
628
.73.
60.
119.
15.
214
.77.
94.
0
1997
28
7520
9.8
101.
18.
62.
129
.72.
80.
1110
.25.
917
.210
.24.
3
1998
24
9322
1.0
93.9
8.5
1.9
29.7
2.5
0.00
10.9
5.2
17.3
10.7
4.1
1999
23
5421
6.5
86.2
7.7
1.8
27.3
2.0
0.05
10.9
5.6
14.8
10.1
3.4
2000
24
2522
2.7
86.9
7.9
1.5
27.5
1.5
0.05
13.5
5.1
15.5
11.1
3.1
2001
26
5122
8.5
89.4
8.3
2.0
27.5
1.5
0.05
13.1
5.4
15.8
12.8
3.0
2002
27
5621
9.0
92.2
8.9
2.2
26.9
1.4
0.00
11.3
4.8
14.4
10.4
3.0
34
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
fand
Po
ultry
Mea
t M
utto
n
Milk
Eggs
Aqu
atic
Prod
ucts
Gua
ngdo
ng, V
illag
e3
1995
32
04
200.
537
.53.
31.
820
.20.
20.
003.
72.
026
.93.
72.
1
1996
29
6320
3.7
37.4
3.1
1.7
20.5
0.4
0.00
3.8
1.8
26.9
3.2
1.8
1997
25
9021
5.1
40.4
3.0
2.0
19.0
0.5
0.00
3.9
1.8
29.0
3.2
1.8
1998
24
2520
9.6
36.9
2.6
1.8
16.3
0.4
0.00
3.4
1.4
25.7
2.5
1.4
1999
27
2522
2.2
36.6
2.8
1.8
16.7
0.6
0.00
3.7
1.5
26.9
3.3
1.4
2000
26
9422
5.5
40.0
3.0
1.7
18.3
0.6
0.00
4.0
1.5
29.4
3.5
1.3
2001
23
3322
1.9
42.9
3.3
1.9
20.2
0.5
0.00
4.2
1.5
31.0
3.6
1.4
2002
22
5324
4.1
53.1
3.3
2.6
18.8
0.3
0.00
3.7
1.4
32.7
4.0
1.6
35
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
(Tab
le A
2 co
ntin
ued)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
f and
M
ilk
Mut
ton
Poul
try
Mea
t
Eg
gsA
quat
ic
Prod
ucts
Frui
tsSu
gar
Yun
nan,
Vill
age
1
1995
39
88
194.
916
4.9
4.7
6.5
18.2
1.8
0.23
4.5
3.4
2.9
26.7
3.5
1996
54
9618
6.5
156.
05.
16.
020
.92.
30.
224.
93.
52.
629
.03.
3
1997
59
8917
8.1
143.
55.
56.
019
.32.
30.
375.
03.
72.
426
.43.
1
1998
67
0215
0.7
176.
47.
56.
520
.93.
40.
266.
43.
63.
328
.93.
2
1999
66
4014
7.1
180.
86.
76.
323
.33.
20.
216.
23.
93.
030
.73.
0
2000
79
8113
2.0
187.
67.
46.
022
.54.
50.
486.
44.
33.
330
.43.
0
2001
66
3812
7.8
192.
17.
45.
621
.43.
10.
585.
44.
03.
129
.82.
7
2002
70
3912
5.5
196.
47.
75.
422
.13.
02.
135.
54.
03.
227
.34.
5
Yun
nan,
Vill
age
2
1995
69
022
7.9
164.
40.
00.
74.
30.
30.
002.
50.
60.
04.
10.
6
1996
57
722
0.0
164.
50.
00.
33.
10.
20.
001.
90.
00.
05.
90.
5
1997
67
420
9.7
124.
40.
60.
53.
80.
50.
001.
70.
10.
03.
70.
4
1998
79
024
3.2
131.
80.
11.
85.
01.
50.
001.
80.
20.
03.
90.
6
1999
51
020
2.6
76.4
0.1
0.8
4.0
0.5
0.00
2.3
0.1
0.0
3.6
1.0
2000
53
220
9.5
84.9
0.2
0.5
4.9
0.7
0.00
2.1
0.1
0.0
3.0
0.7
2001
50
920
5.3
104.
80.
20.
54.
50.
40.
031.
60.
00.
02.
40.
8
2002
57
820
2.9
114.
00.
20.
33.
01.
10.
031.
80.
00.
03.
20.
8
36
Proc
eedi
ngs o
f the
15th
Ann
ual C
onfe
renc
e of
the
Ass
ocia
tion
for C
hine
se E
cono
mic
s Stu
dies
Aus
tralia
(AC
ESA
)
Yea
r
Pe
r Cap
ita
Inco
me
(¥)
Food
grai
ns
(unm
illed
)
Veg
etab
les
Veg
etab
le A
nim
al
Oil
Oil
Pork
Bee
fand
Po
ultry
Mea
t M
utto
n
Milk
Eggs
Aqu
atic
Prod
ucts
Yun
nan,
Vill
age
3
1995
14
83
238.
711
7.5
2.1
3.0
10.9
0.0
0.00
0.4
1.0
0.3
3.4
2.4
1996
27
8021
9.4
119.
62.
13.
612
.90.
00.
040.
61.
40.
54.
42.
6
1997
19
8520
5.6
120.
11.
62.
911
.70.
00.
010.
30.
40.
53.
62.
0
1998
20
6117
3.9
112.
32.
14.
613
.30.
10.
030.
81.
20.
65.
73.
8
1999
21
4217
5.9
89.9
1.9
4.4
13.4
0.0
0.00
0.4
0.4
0.8
6.5
4.0
2000
19
2018
3.9
125.
22.
23.
317
.90.
00.
001.
30.
61.
35.
23.
9
2001
20
7017
7.0
116.
22.
23.
516
.30.
00.
001.
10.
71.
06.
92.
9
2002
21
3015
8.5
114.
73.
23.
918
.50.
10.
002.
00.
72.
09.
74.
1
Sour
ce: c
alcu
late
d fr
om R
CR
E su
rvey
dat
a.
37