Assessing the calorie-income and macro-nutrient income elasticity of Pakistan
Zahid Asghar*
Abdul Rauf**

Pakistan being a food insecure state faces many challenges including poverty that may or may not have a direct link with the inadequate nutrition of its poor population. Calorie intake is an important factor in determining both human health and productivity. Income is considered as an important factor in calorie consumption of people but there is no consensus on the issue. There are two opinions about the calorie-income relationship. On the one hand, there are studies which state positive and significant relationship between income and calorie intake (Subramanian and Deaton 1996). The study indicates that the calorie-income elasticity is significantly different from zero and calorie consumption increase with the increase in income. On the contrary, Boius and Haddad (1992) and Beherman and Deolalikar (1987)argue that the calorie income relationship is weak and the calorie income elasticity is not significantly different from zero. Therefore, there is a need of empirical research to analyse the relationship between income and calorie relationship to gauge food security Pakistan.

To measure this relationship, the impact of income on calorie intake is estimated using Pakistan Social and Living Standard Measurement (PSLM) 2007-08 survey data. Besides calorie income relationship, macronutrient (protein and fat) income relationship which plays important role in food security is also assessed. Income-expenditure elasticities for calorie demand range from 0.38 to 0.42, for protein 0.29 to 0.32 and for fat 0.62 to 0.64 respectively. Robust regression is being used for possible protection against outliers. The results show that income has a positive and significant relationship with calorie intake. The role of income remains significant when socio-economic variables such as household’s head education; household headed by female, and access to safe drinking  are included that also directly affect food consumption.  Livestock availability in a household also has a positive impact on intake of macro-nutrients. As income elasticity is significant for calorie and macro-nutrient intake, increase in income can lead to increase in food consumption. The paper advocates that policies should be focused on increasing income for the poor. The main objectives of the study are :-

  • to find the role of income in calorie and macro-nutrient intake using robust estimation techniques; and
  • to assess food accessibility situation at the household level and to find out ways to  make people food secure.

References

Bouis, H. E. and Haddad, L. J. 1992, ‘Are estimates of calorie-income elasticities too high? A Recalibration of the Plausible Range’, Journal of Development Economics, vol. 39, pp. 333-64

Behrman, J. R. and Deolalikar, A. B. 1987, ‘Will developing country nutrition improve with income? A case study for rural India’, Journal of Political Economy, vol. 95, pp. 492-507.

Subramanian,S. and Deaton, A. 1996, ‘The demand for food and calories’ Journal of Political Economy, vol.104, pp. 133-162.
* Dr. Zahid Asghar is among the Senior Faculty NIBAF, State Bank of Pakistan, Islamabad
** Mr. Abdul Rauf is a Lecturer at the University of Wah, Wah Cantt, Pakistan